I think one of the reasons is also his best PF and C fouled out after 33 and 29 minutes of playing...
But the biggest reason was ball movement, I agree. His SG doesn't have good passing and since he couldn't pass the ball because 3-2 defense, he took a lot of shots and played right into the said defense.
I think 2-3 defense is only good when opponent's inside players are abnormally better than his outside players (and your inside players). If his PF and C and not that much better than yours, I think you should never play 2-3 against LI, but rather 3-2. If you play 2-3, PG and SG will be feeding the ball to PF and C much more effectively and all the advantage you would have because you played 2-3 is gone.