Where does a Linux Live USB actually run? (Unplugged USB, OS kept working)

So, where is a Live USB installed?

While I was trying out using a live USB to test different distros, I had the brilliant idea of unplugging the drive, and see how everything melts. To my surprise, everything stayed the same, and I was able to keep using that live OS (Mint XFCE), even installing stuff onto it.

So, where was that live environment happening? Couldn't be in the USB drive itself, as it kept working perfectly after unplugging. Couldn't be my main SSD either, of course. Maybe a live desktop from USB loads everything on RAM?

This is important for me as I work with installing OSs for other people, and I need to remove as many external factors as I can, if I have an error and I need to diagnose it.

Thanks!

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