Wicking in a fold of a pond liner is a result of capillary action - the water is able to move up the fold of the liner in opposition to gravity. One of those weird forces of nature. Wicking in a porous material works by a similar process but is a bit easier to understand.
Everything in nature becomes easier to understand though when you actually experience and observe it yourself - as many of us have with the old wicking fold in the liner trick. We learned bringing the liner up high enough behind the boulder edge and pressing it firmly against the back of the rock and then backfilling it tightly does prevent wicking. However we built our pond (intentionally) with edges that are very low - love the look of a boulder just peaking out of the water - so we do watch for areas of wicking. Low rocks also will allow your terrestrial plants to grow into the pond side, which can also create a surprising amount of water wicking. I'm dealing with a bit of that right now with some forget-me-nots gone crazy. Love them, but man do they create root mats! My one edge is constantly damp because they pull so much water from the pond.
@GBBUDD - I would never question your building techniques, but it always concerns me when people just getting into pond and waterfall building start talking about using foam to glue rocks together that won't stack securely on their own, or to stop leaks. Doesn't quite work that way. And I've found that exposed waterfall foam will fail over time - I'm talking 8-10 years of exposure to sun, heat, cold, etc - and can easily be pulled off rocks. And as we all know, the best LOOKING waterfalls are built with very few rocks - shouldn't be a whole lot of foaming needed.
The newest thing I'm seeing the pros do is the bib liner - fill an area with foam and then lay underlayment over it. It dries rock hard and does form - over time, as the fabric collects small debris - an almost water tight seal. Very cool idea where you have bigger gaps to fill or want more water to pool before spilling over. Very cool use of foam in my opinion.
Have you ever watched the videos that the PondDigger has done of ponds he's built in CA? I've seen him fill between every rock on the interior of the pond with foam. Run a course - foam behind. Run another course - foam. Etc. I don't recall the exact reason, but I do seem to remember the rocks he was using were relatively small. These were older videos so I wonder if he still does it.
Foam away my friends!