Because its always the little guys who fall victims when things go pear shape. Either they have no inkling, easily persuaded or never understood risk management.
The little guys and gals you hear fall victim to the Nigerian scam or the fund or property spruiker. Or even to the Disallowed salesman President. Little do you know that there are so many small businesses in the US that fell victim to the US-China trade dispute (yes including the President's men and women)- companies that disproportionately depend on sales to China that were no longer purchased, companies that folded because they were on thin margins and could not increase their selling prices locally trading on Chinese products with additional tariffs.
The little guys (and gals) retailers like us who bought stocks based on their fundamentals but bought them at the wrong time just to see a market tsunami not created by the US economy or lack of earnings growth but due to excessive and uncontrollable speculative activities by hedge funds (fuelled by ever flowing O2 from the Fed) and the like that eventually created an inadvertent crisis of sorts that finally breaks the confidence camel's back.
Someone with say a $1m with say $500k in stocks could still lose 50% i.e $250k and still only suffer a loss of 25% in net worth but with still $750k to live on. Someone with say $200k with say $100k in stocks, losing 50% is $50k with $150k to live on. The $50k loss is potentially significantly more impactful to the investor with $200k than the $250k loss to the one with $1m. The investor with $200k may be saving for his/her purchase of a property and decide to park in stocks for the time being. The investor with $1m has no further financial commitments. This is putting things in perspective and you should know where you are.
