ABSTRACT Here we present a new approach for constraining luminous blazars, incorporating fully time-dependent and self-consistent modeling of bright γ-ray flares of PKS 1510-089, resolved with Fermi-LAT, in the framework of the internal shock scenario. The results of our modeling imply the location of the γ-ray flaring zone to be outside of the broad-line region, namely around pc from the core for a free-expanding jet with the opening angle (where Γ is the jet bulk Lorentz factor), up to pc for a collimated outflow with . Moreover, under the condition, our modeling indicates the maximum efficiency of the jet production during the flares, with the total jet energy flux strongly dominated by protons and exceeding the available accretion power in the source. This is in contrast to the quiescence states of the blazar, characterized by lower jet kinetic power and an approximate energy equipartition between different plasma constituents. We demostrate how strictly simultaneous observations of flaring PKS 1510-089 at optical, X-ray, and GeV photon energies, on hourly timescales, augmented by extensive simulations as presented in this paper, may help to impose further precise constraints on the magnetization and opening angle of the emitting region. In addition, our detailed modeling implies that a non-uniformity of the Doppler factor across the jet, caused by the radial expansion of the outflow, may lead to a pronounced time distortion in the observed γ-ray light curves, resulting, in particular, in asymmetric flux profiles with substantially extended decay phases.