alt Hacker NewsPeople in the bubble typically know they are in the bubble. They do not know when to get out. The "even if you didn't make a profit then you'd stand an even more reasonable chance of getting out with fairly minimal losses" is the thing people are wrong about - once bubble is popping, only fastest few can react fast enough.
Is this true though? Take NFTs for again the latest contemporary example - that bubble has obviously long since popped, but those ape NFTs still trade for ~$20k with daily volume in the hundreds of thousands, and a lot of people made a lot of money off it all, some probably still are. At their peak they sold for millions of dollars, but that's on the extreme fringe end. Most traders literally can't afford the heights of bubbles, or anywhere near them, which largely limits the breadth of massive losses.
And we're speaking of modern times where there is this one grand unified global marketplace - the internet, that is most conducive to an inescapably rapid boom-bust. In tulip times there would have been a vast number of relatively decentralized marketplaces with varying supply and demand levels, for a good amount of time after the bubble popped.