When a company share doesn’t have (much) liquidity, two problems occur:-

Firstly, there is always the possibility that having bought the stock, there simply isn’t anyone who wants to buy it off you. If liquidity is low, and you can’t find a buyer, then clearly the classic market rule of supply and demand will apply - and you’ll have t drip the price until finally someone does find it attractive enough to take a punt.
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A firm misconception in this field is that just because the price is already so low it simply can’t fall much further - the only potential is up type of argument.

Not true - absolutely not true. Any share price can fall to a big fat zero, and that will lose you 100% of your money.
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