The heavily reduced loot at Lava City was a bad idea
This location is almost always the far side of the ring. You almost never have enough time to loot all the buildings there because you almost always have a long run. Heals can be difficult to find so you can't hang around in the storm and finish clearing the buildings while you pop endless syringes.
That said, putting only 2 guns with almost no heals in 1 of the multi-story buildings just does not work for the location. You'll only have enough time to run through one building maybe two if you don't have to fight.
Reduce the loot at locations that are centrally located on the map. Players who land centrally will have all the time in the world to loot and hit multiple areas for loot. But doing it in areas that are often far sides of the map just won't cut it. Avoid dropping there? Sure but if my squad goes to those locations anyways, there is not much I can do about it. What's the point to a large map if players can't utilize all of the map to begin with? You end up with a situation in which players avoid areas such as Dome, Lava City and so on because of the far ring potential those areas offer. Now you reduce the loot at those locations and they are nothing but death drops.
I just had a round in which ring was at the edge of capital city. I was only able to get 2 guns an RE-45 and a Eva 8 and white shields. Which is a horrible load out to begin with. I would have had time to sort of hit one more building. But we had an enemy squad. We downed them and I was left in a position with no meds/syringes and 30 rounds of light and 8 rounds of shotgun ammo (which is not enough for the Eva 8). We made it out of the ring first but none of us were recovered from the fight at lava city to handle the squad we ran into at the edge of ring.
Yet if I drop to Capital City, I can almost be guaranteed to find at least blue shields for 2 of the people on the squad and a decent load out and plenty of ammo and heals. Sure there will be fighting. But Capital City often lacks the far runs that come from dropping to locations that are on the corners of the map.
i should add this is if the devs are trying to reduce loot. Maybe it was just a bad spawn kn the RNG part. But the last few times I’ve been there it’s felt like a reduction in loot.