It uses oil. There is no air gap, oil is added and removed as the press moves. It acts like a syringe in reverse. Liquid is crammed into it and the plunger moves out. A powerful pump creates some high pressure oil and it’s crammed into the press, causing it to move. And do to some clever physics stuff, the larger the surface the oil is pressing against, the harder it pushes it. You can’t get the oil to press really hard in the press, enough to destroy a lot of things.
There’s some easy experiments you can to with different size syringes and water to get a feel for how this works.
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