I mean he can't be an idiot completely since he's got a million to blow, right? Unless he inheirited or something and also happens to be a billionaire now as well - to your point that does seem like a small chunck of change to them. Its pretty wild how someone would take chances like that. He threw a 1.4 million dollar property basically up there on the trade block and got screwed to put it into perspective.
He is not stupid in other ways but he could be said to be quite stupid in his decision to risk a huge amount of money at very low odds because he thinks he will definitely make a profit, because when you try to start a business with huge capital but after calculating it you will only get a profit of less than 10% and keep running the business then it's quite stupid because the risk of loss is much greater than the profit gained unless you are someone who really likes risk but just putting it in one basket is another mistake because losing all the money will make him stop doing business or also gambling.