[yummyfajitas]

No, imagine liquidity as a keg of beer. If you drink some, it tastes great. If you drink some more, you feel dizzy, and eventually you wake up with a really ugly girl in your bed.

When using analogies, some explanation is helpful.

[artsrc]

If there are 10 people who want move to street x, having 14 sellers all selling identical apartments, at identical prices is no different than having 50 people selling identical apartments at identical prices or 200.

The difference with HFC is they don't provide any actual liquidity that matters. They don't hold the apartments across different move in dates.