Why does "liquid glass" putty turn cloudy when deformed?

Found this on a Amazon.com review

The product works exactly as described except for the long-span reaction, which is supposed to be a fluid-type reaction where it smoothes out and looks like a little droplet. It never really smoothes out, even after a week the quarter-sized glob I was testing held ridges and my fingerprint, although it did spread out pretty well. (That whole issue may be due to the added magnetic properties, which can reduce the liquid reaction state.)

Then here is a link (http://www.popularmechanics.com/technology/design/a21265/smart-glass-will-become-transparent-or-opaque-at-the-flick-of-a-switch/) about 'smart glass' which becomes opaque and transparent as needed.

Another article about smart glass

https://en.wikipedia.org/wiki/Smart_glass