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A quick look at the source code seems to suggest Li's work is based on Mark Harris' GPU implementation (with Jacobi iteration) of Jos Stam's method. Ref: http://www.expresii.com/blog/innovations-in-digital-painting...
See a history of fluid sim applied to watercolor-like painting: http://www.expresii.com/blog/innovations-in-digital-painting... A quick look at David Li's source code seems to suggest Li's work is based on Mark Harris' GPU implementation (with Jacobi iteration) of Jos Stam's method.