Poetry is full of figures of speech which are words and phrases that intentionally differ from common logic and common knowledge so LLMs can actually be probabilistic and accidental generators of figures of speech. Every nonsense that LLMs generate can be interpreted as a protentional metaphor or an oxymoron. The sentence that you mentioned sounds like a badass metaphor to me "Once upon a time, in a small town, there was a huge town" or in another words: town might be small in size but it has soul.