E.g. 512-bit SHA-2 and SHA-3 may be truncated at 128 or 256 bits if that’s all the entropy you need (and you don’t need to be compatible with the formal SHA2/SHA3-512/256 spec). Here, CloudFlare is truncating to an intentionally low entropy of just 20 bits, not to reduce the security but rather to intentionally increase the collisions. It’s ultimately just a glorified hash table and as any CS student can tell you, the bucket size is just a function of the hash size (v1 of the api: 128-bit hash, v2 of the api: 20-bit hash).
(I don’t like pretension.)