It is called as greed in simple words and I have seen guys who were rich within their minds and went to moon when a token they bought was sky-rocketing but when the price dropped they actually got back to earth again. I can relate what happen with your friend who lost because of extreme greed but it happens with most of us.

I would call it as "being virtually rich" because although technically she (your friend) could have sold and doubled her money but she didn't, so she became rich virtually but never materialized into actual profits.

People often laugh on how someone once bought pizza for 10k BTC but that doesn't mean he spent millions or billions of dollars for pizza actually, it was just normal price he paid at that time and now if that asset turns into gold doesn't mean he was a fool.