Why is liquidity bad?

Excuse me, but could you elaborate on why liquidity is often considered a negative aspect in the world of finance and cryptocurrency? I understand that liquidity refers to the ease with which an asset can be bought or sold without significantly affecting its price, but why would that be seen as detrimental? Is it because excessive liquidity can lead to market volatility or potentially hinder long-term stability? Or are there other factors at play that I'm not aware of? I'm curious to learn more about the nuances of this topic.