probably the domain is a virutual host whose document root is a few levels deep
so lets say the webroot is /www/
and
www.site1.com's document root is at
/www/nichesites/niche1/site1/
so the page you are looking at is
www.site.com/dir1/dir2/dir3/file.html
which is actually
/www/nichesites/niche1/site1/dir1/dir2/dir3/file.html
so in this case ../../../../../ would be referencing /www/nichesites/
or something like that
not the cleanest way to go about doing things but it is the explination that would make most since to me