Gengar78: After I finished the original red faction I wanted to play it again with using cheats. I used the cheat "bighugmug' witch gives you all gun and ammo. After playing around with the destructive environment for a bit I discovered something:

The game only allows you to blow up a certain amount of terrain in a loaded area

Don't believe me? Well follow this step by step tutorial and I will show you how I found this out myself.

1. Get to the room with the mining vehicle with the 2 drills

2. Once you clear out all the enemies in that room, open up the console (Its the "~" key by default) and type in "bighugmug" to get explosive weapons.

3. Start blowing up as much of the wall behind the mining drill as you can. (keep replenishing ammo with the previously mentioned cheat)

4. When it seems as if you can't blow anything up anymore (as in explosives don't get rid of usually destructible) get into the mining drill.

5. Drive to the opposite wall with the drills turned on and attempt to destroy anything.

6. If the drill is unable to destroy anything, then congratulations! You just help prove an interesting fact about Red Faction!

BONUS: get out of the drill and move on to the next loading screen. You will now be able to destroy the environment again.

s1drano: You can also just visit the Glasshouse under Extras. No typing required, just replenish your ammo as needed.

It also makes sense that you can't blow too many holes in the game.
Keep in mind that each hole is an object in game, meaning they occupy space in memory and need to be rendered. The more holes you have, the more memory is needed.

It's the same reason why you can't have an unlimited amount of bullet holes or corpses in any game. At some point, the engine needs to get rid of those objects; only in Red Faction you can't simply get rid of the holes. Imagine digging a very deep tunnel, then when you need more ammo, realizing that the hole you dug has been closed behind you.

A game this old is certain to have set the limits near what PCs at the time were able to handle.