That rule applies equally well for squares over a pit trap or off a cliff. Much like how the conjuration rules that prevent conjurations from triggering pit traps and falling into them are construed to allow people to create conjurations directly over a creature's head, the rules are a little less clear _because the rules don't deal well with three dimensions_.
Hence, there's a lot of table variance. So whenever you want to do anything that relies on manipulation of three dimensions, you really want to check with the DM first. And good luck with that in LFR...