"The TPS25751 supports liquid detection by measuring the voltage level across the SBU pins of the Type-C connector. When a short occurs across the SBU pins to another Type-C pin(s), the TPS25751 takes action to protect the the Type-C port by disabling the power paths and notifies the embedded controller when applicable. Once liquid has been detected, the TPS25751 continuously monitors the SBU voltage. During the SBU voltage monitoring, if the liquid/short is no longer present the TPS25751 takes action to return to normal operation."
In other words, it's not actually detecting "liquids" but more of any conductive short. Non-conductive liquids, like oils and many other petroleum products, won't be detected.