I don't think it's anything to do with the PSU, within reason. As I understand it, it's to do with the maximum power that Pi can simultaneously supply to its peripherals. Exceed that, Pi hangs with no diagnostics.

Meridian owner since 1992
Prime & PSU, Focal Elear headphones, Roon (ROCK 8Gi5 NUC), Explorer 1 & 2, F80. 200/203, various Sonos (via Roon).