I think enough damage could be done to trigger an explosion- all kinds of crazy things are possible, just not likely. Certainly, filling a ship with 200, 400, or 800 1" holes is not going to help it float, so you ought to be able to sink even a large cruise liner with enough 20mm. Armored ships would be immune if the 20mm couldn't penetrate their hulls. 800 2 cm holes is (roughly) like shooting a 20 x 80 hole in the side of the ship! That's pretty serious damage.
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