Soil liquefaction on 28 September 2018 in Palu, Indonesia, included one of the largest soil movements ever, where objects on the ground surface moved hundreds of meters away and settlements sank into the mud. Some preliminary studies show that in addition to a strong earthquake, there are strong indications that a confined aquifer in the Palu valley worsened the liquefaction. The role of the confined aquifer can be recognized early on from one of various signs, namely the presence of massive surface inundations suspected due to groundwater expulsion which is thought to originate mostly from the confined aquifer. This paper describes the mechanism of the soil liquefaction in Palu from the perspective of earthquake hydrogeology, focusing on the groundwater expelled from an unconfined aquifer and especially from the underlying confined aquifer through hydraulic inter-connection between the two, which is possible due to simultaneous interaction of excess pore pressure dissipation and enhanced permeability driven by an earthquake in the near field. If this hypothesis proves to be strong, there are implications for engineering practices because the evaluation of potential soil liquefaction carried out currently in the geotechnical engineering field generally only involves the role of shallow groundwater and/or the unconfined aquifer and the role of soil layers not deeper than 30 m from the ground surface. It may be necessary to complement current evaluation practice with an evaluation of the deep groundwater response to earthquakes, especially if the deep groundwater is artesian and productive, with a relatively thin confining layer.