Most likely due to spelling rules which say that if a verb ends in a vowel (a, e, i, o, u), you drop the final vowel before adding the “-ing”. The problem here is that with a verb like “lie”, that means you end up with “liing”, which would not have a very clear pronunciation to it (it could be “lee-ing” or just “leeng” or… several different options perhaps). So to solve that, just replace the “i” with a “y” to make the same sound and preserve an easy marker for pronunciation.
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