For example with IPv4 addresses I can add the alias 172.16.0.0/12 to a loopback adapter:
ip addr add 172.16.0.0/12 dev lo
and I am then able to ping any address from 172.16.0.1 - 172.31.255.255 without needing to add millions of aliases.
What confuses me is why I can't do that same "trick" with an IPv6 address. For example if I run:
ip addr add fdf0::/64 dev lo
I am able to only ping6 fdf0:: but not ping6 fdf0::1