Solid Snake was awesome and beat down Liquid in a fist fight, before living another decade and dying.
Liquid got killed by FOXDIE because he's a pussy. Then his arm got attached to Revolver Ocelot. And thats the end of Liquid.
Oh yeah, and Ocelot ISN'T possessed by Liquid. He'd undertaken intense psychotherapy to develop an alternative personality that was similar to Liquids to do some shit against the Patriots or something. Liquid's dead. End of.