The ground path for LED pixels must be designed for both DC performance as well as AC performance. Any length of wire looks like an electrical spring to the data signal, the longer the wire the softer the spring.
The data input of the pixel is referenced to it's ground lead. Digital inputs usally work in terms of two "threshold voltages". Below the "low" threshold, the input is considered a "0". Above the "high" threshold and it's considered a "1".
The typical "TTL" threshold levels are; anything below 0.8v is a "0" and anything above 2.0v is a "1". The integrated circuit in the pixel is watching this input pin for a certain timing of "0" vs "1" to decode the color data
into its memory to light up the LEDs. If it doesn't read timings that its expecting, it will not light up.
So, the data input of the pixel needs to have the "high" and "low" of the data signal (in reference to its ground pin) within a certain window for it to be able to pick up on the timing of the data and begin working.
Two main things can be wrong with the ground path (assuming the data wire is fine).
A DC problem with the ground path is caused by the pixels drawing DC power to light up the LEDs. A DC current draw through any wire will create
a voltage drop. If too many pixels are on too small of a wire, the voltage drop will become significant enough to skew the data input voltage levels from the pixel's point of view. Remember that the pixels are drawing current
between power and ground, so voltage drop on the ground wire is actually "upward". This shifts the apparent data input voltage of the pixel down. Many pixel users are familiar with measuring voltage drop to determine
whether larger wire needs to be used or when to implement "power injection". Most are thinking in terms of the supply voltage to the pixels and not about the effect that the "upward drop" on the ground is having on the data input.
If in question, you should always use a multimeter to check voltage between a ground on the controller and the ground pin of the first pixel of a string to see how much the ground is "sagging up".
An AC problem with the ground path is caused by the current return path of the high frequency data signal. There are two components of the current on the data output of the controller. (1) Capacitive reactance of the pixel's data input
which is referenced against the ground pin on the pixel. and (2) Capacitive reactance of the data wire going to the pixel which is referenced against anything conductive near the wire. This can be mostly directed toward the ground wire
running along near the data wire, but also to the earth or anything metal that the wire is running near. The result is that a portion of the return current of the data signal is being drawn across the ground wire like an AC spring. This
will result in major issues with the pixel receiving data and can be very hard to measure. The best way to avoid this is by strictly following an ideal grounding topology so that any "ground noise" (meaning fluctuations on the ground wire
from data signals) are minimized and predictable. The more channels that are being run on one controller, the more this begins to be a problem. Strictly number of channels and length of wire to the first pixel matters, the amount of
lights per string does not affect this.