I don't know why people often trust meme coin or altcoin to an extent getting involved with $5m how and why?
Do you think such person have a common sense or he doesn't have a financial adviser someone who works as ADC to him?
If that he invested the whole lot of money to bitcoin alone then I don't think he could had lost this way, maybe after the market gained another ATH then he might sell and get back those invested funds.
Meme coins are considered hyped coins and we can't deny that many people become rich and earn huge profits from investing in them during the hype. Their experience teaches them something really happen in the crypto space and they will be doing this again and again despite the high risks. I won't say that they don't have common sense but they are really practical in this matter, perhaps they are smart and have the ability to adapt to the situation. We can say they are wrong but guess what, risk takers earn more profit, and these meme/hyped coins investors possibly earn more than those who invest in Bitcoin ( and they might lose huge amounts as well).