I read in this post above that the height in the *.terrain tiles is unsigned short which means it is 16bit and has an upper limit of 65535. And because the height unit is 1/5 meter, the actual limit for its range is 13107 meters.
What I eventually did was making terrain data I am using to have the sea level at 9000m which covers all the area I am interested to be within the 13107m range. I then offset the ellipsoid the terrain is “covering” by -9000m (x,y,z of the Cartesian3) as well so it works seemingly with actual locations of czml data.
Do you forsee any problem with the approach above?