sportsbook liability calculations and how this affects what you can bet

When I’m playing slots I know the house edge is always baked in, but lately I’ve been more into sports betting and realized there’s a lot going on behind the scenes. I keep hearing about books adjusting lines or limiting people because of something called “liability” but I never fully got what that means for your actual wagers. Does it mean if too many people pile on one side they change the odds, or do they just cut off your max bet so they don’t take a bath?

I’ve heard stories of people getting bet limits lowered right after a big win streak, even if they’re just betting small amounts. Do books track everybody and adjust the risk, or is it mostly automated? I get wanting to keep things fair for the house, but it can be annoying when you’re just trying to make a steady little profit. Anybody seen their bet limits change out of nowhere?