Exploit to bypass limit

[Yertled]

Here is a video showcasing the issue: https://www.youtube.com/watch?v=TSktA9bQFrk

We have a limit on tile entities, and you can see in the video that the limit was hit, but when he puts water on the chest, it unlocks the limit or something? After he places water on a singular chest, multiple times, he can then place multiple chests to bypass the limit.