Hmm, Nope it’s not liquidity that decides the profit or loss but the trader itself, it’s the trader who decides his trade in profit or loss, Liquidity is not the reason for the change in market price, it’s the trades getting executed.

Liquidity is ese with which we can buy or sell coins/tokens, Higher liquidity = lower price changes in the market, and lower liquidity = higher changes in the market price. For the rest in order to go deep into this concept I would like to hear more from your side, to know what is your perspective about the liquidity and price fluctuation in the market. But yup liquidity itself cant generate profit for traders or projects.