Software can be copied infinitely, so even $1 of liability is effectively infinite since an unlimited number of people can potentially use it and sue you when it blows up.
Nobody's going to be distributing software on the internet for free if the cost of insurance alone precludes that.
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This is not how liability works, anywhere. So I write a piece of code that "makes your screen do cool things" and it causes the power supply to fail on those screens. Someone reports that bug to me and I check it out and say "Oh, shit it does break power supplies." Then I immediately put a notice on and in the code that says "WARNING: This code will break the power supply of your montitor." And I put that warning in the repo. And if there is a Discord or a mailing list I tell everyone "Hey, this is important, if you run this code it can break your monitor."
Guess what, I'm not liable for the damage. Why? Because I immediately responded once I knew that it could, I made a good effort to warn people who might already have the code of the risk, and I made it clear in the code that this risk is there.
Ever wonder why you get a booklet of warnings when you buy a product with even really stupid things like "Don't clean with gasoline" warnings? That's because once you have discharged your duty to warn you are not longer liable in what happens if someone ignores your warning.
The flip side is also true, you cannot say in your product both "Hey this product does these cool things" and "We don't warrant the product to actually do anything." This is especially true if there is money involved (like your user paid your some $ for the product.) There is always an implied warranty that the thing will do what you says it will do, which exists as long as the user has heeded all your warnings.