[bac2369]

Someone please educate me on this...

After round 2 of the playoffs, there will be 4 teams left on the eastern side of the bracket:  Pikeville, Hazard, Raceland, and Paintsville.  At that point, do those 4 teams get re-seeded based on RPI?

That would likely mean Hazard at Raceland and Paintsville at Pikeville in round 3.

Or do they get lumped in with the 4 teams left from the western side of the bracket at that point before being re-seeded based on RPI?

That would likely mean Paintsville at Pikeville, Newport Central Catholic at Raceland, Kentucky Country Day at Hazard, and Bethlehem at Campbellsville in round 3.

Which is it?

The way I understand it is they reseed the four teams remaining in the east (Raceland,  Paintsville,  Hazard,  and Pikeville)  and the four remaining in the west.  Then the final 4 (semi finals) is reseeded regardless of geographic region. 
Hope I am not wrong. They don’t do this nonsense where I live.

You are correct.