You will hit a point where you can no longer compress it and it will no longer flow. Bed-It is specifically formulated for lack of cold flow, and specifically formulated for a compression installation. It has a wider working temp range -40F to +220F due to its formulation yet is still easily compressible & usable even at 40F. Elongation is greater than 1800% and this is part of what maintains the seal under component flexing. Its all in how you formulate the product for the intended use. I worked with my lab and manufacturer for a long while developing the test procedures and formulation for use as a marine bedding compound... There will always be butyl tape under there and you won't squeeze it all out.. The countersunk holes serve to really create an excellent seal at each hole.
The full instructions and details are here with plenty of images: http://www.pbase.com/mainecruising/rebedding_hardware
If you have questions email me directly: compassmarineservices at gmail dot com