Often what happens with LPs is that the market has a sudden regime change the position designed for, and as a result gets saddled with huge Impermanent Losses. Sometimes you can't respond fast enough or the chain is so congested you literally can't transact. This is where HLPs come in. Users
For example, you might have been providing liquidity to the Solana/USDC pool with a in Nov. 2022 when FTX collapsed.