The hydraulic liquids were used to adjust the fins seen in the video on this page: http://www.businessinsider.com/spacex-problem-falcon9-crash-...
Elon Musk replied that the team had underestimated the amount necessary by 10%.
The rocket can also steer by "gimbaling" the motor (pointing it in different directions), but that has limitations; changing the rocket's orientation will also change its velocity (like balancing a broom on your hand).
In this case, the hydraulic fluid is used to rotate the grid fins and therefore keep the rocket upright. When the fluid ran out, the fins wouldn't work, which is why the rocket comes down tilted.
Hope that helps!
I think they use fuel as the hydraulic fluid for the gimbaling of the motors, but not for the grid fins.