Sysadmin Nginx location block in location block

Just noticed I had } in wrong place, but nginx was working and page was working.

I think this (for example) should not work.

Code:

 location / {
    rewrite ^ /index.php$uri;
    include /usr/local/nginx/conf/php-pool2.conf;

  location ~ ^/(?:build|tests|config|lib|3rdparty|templates|data)/ {
        deny all;
    }
}

How nginx reads that kind of configuration? Feels like it read normally like separate location blocks. Is that somehow allowed way even I didn't find any similar by googleing..?

Spoiler: A few lines from my config

server {
.
.
.
location / {
rewrite ^ /index.php$uri;
include /usr/local/nginx/conf/php-pool2.conf;

location ~ ^/(?:build|tests|config|lib|3rdparty|templates|data)/ {
deny all;
}
location ~ ^/(?:\.|autotest|occ|issue|indie|db_|console) {
deny all;
}

location ~ ^/(?:index|remote|public|cron|core/ajax/update|status|ocs/v[12]|updater/.+|ocs-provider/.+)\.php(?:$|/) {
fastcgi_split_path_info ^(.+\.php)(/.*)$;
include fastcgi_params;
fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
fastcgi_param PATH_INFO $fastcgi_path_info;
fastcgi_param HTTPS on;
#Avoid sending the security headers twice
fastcgi_param modHeadersAvailable true;
fastcgi_param front_controller_active true;
fastcgi_pass php-handler;
fastcgi_request_buffering off;
}

location ~ ^/(?:updater|ocs-provider)(?:$|/) {
try_files $uri/ =404;
index index.php;
}

# Adding the cache control header for js and css files
# Make sure it is BELOW the PHP block
location ~ \.(?:css|js|woff|svg|gif)$ {
try_files $uri /index.php$uri$is_args$args;
add_header Cache-Control "public, max-age=31536000";
# Add headers to serve security related headers (It is intended to
# have those duplicated to the ones above)
# The ones above removed because those are harcoded in NC13.
# Before enabling Strict-Transport-Security headers please read into
# this topic first.
add_header Strict-Transport-Security "max-age=31536000; includeSubDomains;";
#
# WARNING: Only add the preload option once you read about
# the consequences in HSTS Preload List Submission. This option
# will add the domain to a hardcoded list that is shipped
# in all major browsers and getting removed from this list
# could take several months.
add_header X-Content-Type-Options nosniff;
add_header X-XSS-Protection "1; mode=block";
add_header X-Robots-Tag none;
add_header X-Download-Options noopen;
add_header X-Permitted-Cross-Domain-Policies none;
# Optional: Don't log access to assets
access_log off;
}

location ~ \.(?ng|html|ttf|ico|jpg|jpeg)$ {
try_files $uri /index.php$uri$is_args$args;
# Optional: Don't log access to other assets
access_log off;
}


# block common exploits, sql injections etc
#include /usr/local/nginx/conf/block.conf;

# Enables directory listings when index file not found
#autoindex on;

# Shows file listing times as local time
#autoindex_localtime on;

# Wordpress Permalinks example
#try_files $uri $uri/ /index.php?q=$uri&$args;

}

include /usr/local/nginx/conf/pre-staticfiles-local-mahta.win.conf;
include /usr/local/nginx/conf/pre-staticfiles-global.conf;
include /usr/local/nginx/conf/staticfiles.conf;
include /usr/local/nginx/conf/php.conf;

include /usr/local/nginx/conf/drop.conf;
#include /usr/local/nginx/conf/errorpage.conf;
include /usr/local/nginx/conf/vts_server.conf;
}

---

 

Thank You for the help! Again
Do you have any link to a site where's more information about that? It may be usefull to know more about it.

I've been so tired and busy lately, so that could be intended, but I just can't remember why. So I bet it's an error...
Thankfully this is just a hobby. So no angry customers or bosses.

BTW.
I'm having strange triangles here.

 

Win 10 and Firefox 61.0.1 (64-bit)