It doesn’t burn the circuits. It provides a pathway for electricity to flow. In a path that wasn’t intended by the engineers that built the device. This often results more power flowing than designed for. Too much power = a lot of heat = stuff burning.
So the water isn’t burning the circuits. Its creating a pathway for the circuits to burn themselves.
The device doesn’t have to be on because the device powering on is just it closing a “switch” to complete a circuit. If the water links the electronics together, it will bypass that “switch”, and allow current to flow anyways.
It can also cause oxidation that can break delicate printed circuits preventing current flow and disabling the circuit as well.
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