With reciprocating compressors, mists will vaporize because of the heat. As the amount of liquids increases, the droplets will hit the suction valves and vaporize because the valves are hot. As more liquids enter and hit the valves, damage will occur, as the liquids vaporize, the heat they absorb causes localized cooling of the metal and the valves break.
If the liquid does get through the valves in the liquid form, they will fail. The valves may be broken and gas will pass back and forth through the broken valves cause an increase in average cylinder temperature. Hot suction valves is an indication of the problem.
A large amount of liquid will break the pistons or rods and the unit should stop because of vibration or sensing errors. There should not be an escape of gas because the failures are internal.