When the dotcom bubble burst, it affected far more people than just the shareholders and employees of those specific companies.
The economy is interlinked, and a bubble bursting hurts many people.
Part of it is realizing the pains of inefficient allocation of capital. A bubble "bursting" is often an indicator that the capital in within that bubble had been previously misallocated. So the broader pain when the bubble bursts, is partly society and the markets suddenly discovering that the $3.5B probably could've been put to better, more productive uses.
The economy is interlinked, and a bubble bursting hurts many people.
Part of it is realizing the pains of inefficient allocation of capital. A bubble "bursting" is often an indicator that the capital in within that bubble had been previously misallocated. So the broader pain when the bubble bursts, is partly society and the markets suddenly discovering that the $3.5B probably could've been put to better, more productive uses.