Let’s say I setup some subdomains and then point them to my home server via Cloudflare tunnel.
If I use one of those subdomains from my personal PC on the same network as my home server, to watch a movie for example, is all of that traffic going out to the internet and then back? Or does all the traffic stay internal once the connection has been made?
Yup, there are few efficient ways to handle that, so anything that does it looks something like everything else that handles it.
Sadly, not many things handle it :)