Ok -- I need your help. I'm missing something here.
People got RSUs. They owed tax on said RSUs. The tax cannot be higher than the value of the RSU at the time of vest.
If people did not have enough cash to pay their tax bill, and did not sell enough RSUs to get cash to pay said tax bill, then yes, I can see those people "with a loss" because they had a "surprise" tax bill, RSUs price went down and a cash problem now. Is this what you mean happened?
They shouldn't have had to "sell everything" -- at most like 50%.
I'm arguing with you here because this stuff is complex, and many people shy away from trying to understand it, and that's a huge disservice for those in our industry.
For anyone reading along -- It's as simple as this: understand the tax implications of the assets you own, pay your taxes.