Hong Kong's infamous Kowloon Walled City: a 3D reconstruction of the densest city on Earth

The Kowloon Walled City evolved from a Song Dynasty outpost to a densely populated, anarchic settlement. Initially a fort to regulate the salt trade, it was occupied by the British in 1899. During WWII, the Japanese used its stones for airport expansion. Post-war, refugees flooded in, and the city became a lawless haven. By the 1990s, it housed 50,000 people in squalid conditions, with rampant crime and unlicensed businesses. Despite this, it had schools and churches. The British demolished it in 1993, transforming the site into a garden.

What unique political status did Kowloon Walled City have that made it an embarrassment for the British government?

What happened to Kowloon Walled City after its demolition in 1994?