Mold cannot grow submerged in water because it needs sufficient oxygen to survive, but mold can grow on the surface of water if there are enough nutrients for it. When you overwater a potted plant, you create soil that is damp but still breathable and full of nutrients, the perfect environment for mold.
Fun fact: This is the principle behind brewing and fermenting. Anything properly submerged in liquid remains safe to consume because you create an environment that is inhospitable to mold, mildew, and most bad bacteria.
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