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How busting mechanism works in the backend in BI Publisher

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How busting mechanism works in the backend in BI Publisher

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I am trying to understand how bursting mechanism works in the backend and what will be the issues when the BIP report has more than 100,000 records from which filtering should happen and emails needs to be sent. 

1) The BIP report runs in the backend and puts all 100,000 records in cache and bursting query runs and puts the 10 records in cache and filtering happens in the cache between BIP report and bursting query and then bursting of the emails happens?

2) On the fly filtering happens and then bursting of emails is done?

Please let me know your thoughts.

Thanks In Advance. 

Version

12.2.1.3.0

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