Could be any or all of that, yeah. You can also set the level of precision for your reported location, but I don't think even the lowest precision settings would put it 1,000 miles away.
I live near-ish to an airport, and I'll occasionally see nodes that are 1 or 2 hops and 100-200+ miles away. Best I can tell, the airborne node is legit relaying those which I think is pretty cool. Not really useful, but cool.