Yeah, that's the problem - Spanish is a very gender specific language - latino is a male latin, latina is a femal latin.
They could very easily say "latinos y latinas" and one might think that would address everyone. But not to libs, because since there are more than two genders (according to them) then you need something that will cover all of the other genders, not just the two that we know about. So, they made up latinx out of thin air.