What is Liquidity?
How much money sits in the trading pair's pool. The thinner the pool, the easier for the deployer to drain it (rug) and the worse your slippage on exit. It's a risk signal, not a guarantee: low liquidity ≠ automatically a scam, high ≠ automatically safe.
Example
Liquidity $3,000 → a thin pool, easy to drain; $500k → easier to exit.