What are you talking about?

Losses are much more privatized staying private. Instead of hitting people's 401k or pension fund, this is mostly contained to a concentrated set of VC and PE investors, not large public markets.

The companies involved still come for the 401k/pension funds, they just now wait until the majority of the upside growth has been realized and then dump the downside on to 401k/pension funds.

See: SpaceX and the Nasdaq 100 rule changes.