Dry soil allows a lot of air to flow through. And pure water will dissolve oxygen through the surface and distribute it through the container, especially if its got movement.
Wet soil stops both of these from happening. Air can’t pass through the soil because the water its blocking it, and with all the soil grains in the way, the water can’t flow and distribute its oxygen easily unless its being forced through. So eventually the oxygen dissolved in the water is used up and the wet soil becomes anoxic. Plant roots can hold out for a time, depending on the environment and the species, but eventually they suffocate unless they are evolved for high moisture environments like bog, wetland, or shoreline plants are.
Water is one part oxygen. Plants in soaked soil rot because the soil stays too wet for too long and compacts around the roots, “suffocating” them. When growing hydroponically, there is nothing but water and inorganics like leca or perlite that do not compact. The water is either constantly flowing or is changed frequently to keep the oxygen level up.
Basically wet soil is mud that gloms onto roots and blocks oxygen uptake leading to rot and eventual death of the plant.
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