Suppose I have Project X under closed source. It references/links to component Y which is LGPL, we make modifications to component Y
1) We release Project X binaries with the source to the modified component Y
OR
2) We contribute component Y modifications back upstream (to the original author(s)) and release Project X binaries without component Y source.
Does any of these scenarios comply with the LGPL?
1) is fine.
2) is not: you have to distribute y source (or at least a written offer to do so). Your users would have a hard time looking for your modification in depths of upstream patch repository (a bug tracker, whatever).