Yeah, there are two components here
- Adding extra length.
- Adding more outlets.
2 is the main problem, but you need a little of 1 to have it fail in an unsafe way (ie. not just tripping the circuit breaker).
If you just add a lot of extra outlets and plug lots of stuff in then you will simply trip the circuit breaker. (Assuming that everything is properly set up according to code.) In order to create a problem you need some extra wiring that is rated for less load than the wall wiring. (Now in practice every splitter has some amount of wiring, so these can be the same device, but most power bars are rated to be “fully used” or have a fuse internally). So the problem looks something like this:
- Have a 20A wall circuit.
- Plug a 10A extension cord into it.
- Plug a power bar or other splitter into the extension cord.
- Put enough devices into the splitter to generate 15A of current.
Now you are overloading the extension cord and risking fire.
The circuit power doesn’t matter for the example. I was just picking easy numbers. You can have the same problem as long as the rating of the extension cord is less than the circuit breaker. (And as you pointed that out this is a very common case due to the frequently low rating of extension cords.)