If the Xiao Family is implicated, as one of the three families united on a common front, they would suffer some losses. The downfall of the Liu Family would have no effect on the situation in Capital City or the overall situation in Country H. However, if the Xiao Family gets involved with this Liu Family matter, the situation in Capital City would certainly change.
Such a change is not what Old Deng, Old Master Situ, or Old Master Loo wish to see. Therefore, if they receive news about the Liu Family incident in a timely manner, they can immediately take measures should something go wrong.
Situ Haotian and Situ Haoran, who had originally planned to add fuel to the fire for the Liu Family, were also ordered by Old Master Situ to stay away from the matter to avoid stirring up trouble before achieving their goal and getting themselves smeared by it instead.