Well, the problem is in the mechanism upon which oxygen is stabilized. You see oxygen only turns to liquid state in sub-zero temperatures, to be more specific at minus 297.4 degrees Fahrenheit or minus 180 degrees Celsius. So how can you turn oxygen into liquid without creating an environment that is more than freezing? Companies use a variety of chemicals as stabilizers. That is why they call these as liquid-stabilized oxygen.

The technique is quite simple. A molecule that naturally contains oxygen which can be easily cleaved when subjected to the acid environment of the stomach is needed. For instance hydrogen peroxide contains two molecules each of hydrogen and oxygen. When a chemical reaction takes place a molecule of oxygen is removed to form water (H2O). Since oxygen is now free then it can easily diffuse through the blood vessels lining the gut.

Sadly, companies making liquid-stabilized oxygen have been mum on the ‘ingredients’ they use. Some use hydrogen peroxide while others use magnesium hydroxide, both of which are immersed in a solution of sodium chloride. This makes it exceptionally difficult to pinpoint the potential side effects of such products.

Oxygen in itself is not harmful, this we already said. But the other ingredients used in ‘stabilizing’ the molecule have the potential to cause harm. Unfortunately, companies don’t tell you what their ingredients are.
 

Benefits of Liquid Oxygen
Given that liquid-stabilized oxygen is no more than a liquefied delivery of oxygen at normal temperatures its benefits are no more than the oxygen we breathe through the air. However, there are certain distinct advantages of liquid oxygen.

Provides oxygen in oxygen-poor conditions
Higher altitudes mean the air is thinner. That being said, while the oxygen concentration remains 21 percent relative to the concentration of gases in the air, there is still sufficiently lower oxygen that we can breathe-in at higher altitudes. Even if we do inhale as forcefully as we can this will still not be enough to meet the oxygen requirements of the body. As such, keeping a bottle of liquid-stabilized oxygen in your backpack should help you replenish your body’s oxygen supply even though you’re on top of Mount Everest or high up on an airplane preparing for a High Altitude Low Oxygen (HALO) jump.

Provides oxygen among patients with breathing difficulties 
Patients who may have difficulty breathing but who can still swallow can also benefit from the life-giving benefits of oxygen by drinking liquid-stabilized oxygen. Traumatic injuries to the nasal cavity can make breathing difficult. While mouth-breathing can help draw air from the environment, this can be supplemented by drinking liquid-stabilized oxygen.
The concept of liquid-stabilized oxygen is not really new. It is the same as breathing in oxygen from the air. The only issue is that oxygen must be carried in another molecule to allow it to be delivered through the gut. And this is where the questions lie. Companies that make these products have vowed secrecy for their ‘ingredients’. So when it comes to ascertaining their safety there really isn’t much to go with.