Out of scope:
Assuming we have 1M shortlinks created per month, and let's assume we have 100x more shortlinks read than those created, that's:
With this scale, we need only 1 machine + an additional for failover, however that assumes evenly distributed traffic. Even for bursty workloads, our POSTs should be fine, so I'd separate into a POST service and a READ service that gets the mappings, so we can autoscale our read cluster separately from the writes. For each cluster, we'd need to propagate them to two separate availability zones for failover. Long latency in practice comes to about 300ms which is too high for our low latency requirement, so we'd need to use geographic replication to maintain the SLA.
Defining the system data model early on will clarify how data will flow among different components of the system. Also you could draw an ER diagram using the diagramming tool to enhance your design...
Explain how the request flows from end to end in your high level design. Also you could draw a sequence diagram using the diagramming tool to enhance your explanation...
For scaling, our system should well to handle high read traffic and write throughput, however there are a few bottlenecks:
What are some future improvements you would make? How would you mitigate the failure scenario(s) you described above?