All trading losses can be explained as losing traders not understanding and properly accounting for the risk of their strategy.
It is a safe bet that most retail traders are not at all systematic in their trading or use poor systems, which are moral equivalents in this world.
A good trader looks for arbitrage opportunities, or failing to find any, takes calculated risks.
In bubbling markets, FOMO makes people risk-seeking as opposed to risk neutral. They overpay for risk, the volatility becomes a selling point. The bet works out for some, but most will be burned. It is basic statistics.