The actual risk of this is less than the risk of just firing a plasma torch, operating a welder, or using other electronic devices that produce Ozone. The amount of hydrogen produced is not only minuscule, but as it is lighter than air, being introduced into a highly turbulent environment, and exposed to plasma/sparks during cutting, it escapes naturally into the atmosphere or is consumed quickly in low concentrations.
The risks associated with hydrogen production in plasma cutting are based on industrial environments where massive operations could produce levels considered to present a possible danger under unlikely but technically possible scenarios. OSHA hazards/risks are based on a matrix of worst case severity and probability so even if it’s unlikely, if a catastrophic event can be conceived as even being remotely possible, it is presented as a hazard that should be mitigated.
If a factory was using plasma cutters to cut lots of details into the edges of an upside down aluminum stamping (Think of a stamped aluminum sink shape), then the hydrogen could, possibly, collect in the upside down area of the sink and create a hazard.
I would bet that even if you designed a part specifically to create that effect on the crossfire, the limits of the machine themselves would make it nearly impossible to create a truly dangerous environment. I could design a shape specifically designed to catch/collect gasses that were escaping from the cutting jet and the vertical limitations of the Xfire machine would still make concentrating that gas into anything dangerous very unlikely.
Lowering the water level to mitigate hydrogen could actually expose the user to additional vapors and particulates that are far more dangerous in the given concentrations. Mitigating the effects of hydrogen generation on a machine this size is just like wearing steel toe boots, a hardhat, and having someone stand next to you with a wooden cane while you are using it. It’s fine if you want to do that, and it may even be on the side of a good safety practice, but it is certainly not necessary.