Hyperlinks to files often break after moving them because these links rely on specific file paths to locate the target. A hyperlink stores either an absolute path (a full address like C:\Documents\report.docx) or a relative path (a location relative to the linked file itself, like ..\Files\report.docx). When the target file is moved to a different folder, drive, or server, the stored path in the link becomes outdated and incorrect, leading to a "file not found" error. The link points to the old, now invalid location.

This commonly causes issues in scenarios like reorganizing documents on a personal computer or within a shared network drive. For instance, if a PowerPoint presentation links to an Excel spreadsheet stored in the same project folder on your laptop, and you later move that spreadsheet into a sub-folder, the presentation's link to the spreadsheet will fail. Similarly, within corporate platforms like SharePoint or Microsoft Teams, moving a linked document to a different library without updating sharing settings breaks links embedded in emails, wikis, or other documents.

The main advantage of hyperlinks is their convenience for direct access, but this fragility is a significant limitation. It necessitates careful file management and consistent folder structures to prevent disruption. Best practices include organizing files logically before linking and, where possible, using relative paths if files remain within the same overarching folder hierarchy. When moving files is unavoidable, updating links manually or using link management tools becomes essential. This limitation drives the adoption of cloud storage solutions (like OneDrive or Google Drive) that automatically manage paths and link accessibility through unique identifiers rather than fixed local paths.