As of now, reorgs of more than a single block is quite rare, because of how fast the blocks propagates but it still has the potential to happen.
Speaking of, the last time I am aware of a 2 block reorg was at block 656,477, which was in November last year. Is anyone aware of any more recent reorgs of greater than a single block? Incidentally, there were no double spends during that reorg.
Users don't even realize something like that happened and the other block contains almost the same transactions.
Exactly this. There is usually a significant overlap between candidate block A and candidate block B. Further, whenever the winning chain (let's say chain A) is extended by another block, then any transactions which were included in candidate block B but not candidate block A will usually be included in the block A+1. Most transactions will go from 1 to 2 confirmations normally, and a few which were in block B but not in block A will go from 1 to 1 confirmations when included in block A+1. Only the very rare transaction will be included in block B but not in either of A or A+1, and will go from 1 confirmation back to unconfirmed. But of course unconfirmed doesn't mean money has been stolen - it just means the transaction is back in the mempool waiting to be mined again.