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The word "孔明灯" is formed by combining the name "孔明", which is the courtesy name of the historical strategist Zhuge Liang, with the character "灯" meaning lantern, directly denoting a type of lantern historically linked to his purported innovations or use.

Word Definition - 孔明灯

kǒng míng dēng sky lantern (miniature hot-air balloon used during festivals)