No, I didn’t. Read the linked comment and its follow-up.
Of course it’s a valid concept. But people hastily use it as a drop in replacement for any situation in which they would like more money for any reason, and to blur the difference between illiquidity and insolvency. Just like in the situation the parent described!
In the case of FTX, the value of their cryptos had already fallen, and they would take that haircut even if given extensive time to make that sale.
There was nothing that would make the cash flows match.
https://www.investopedia.com/terms/l/liquidity.asp
You have misunderstood the meaning of liquid.