[stouset]

It's also very easy to convince yourself that you have particular insight that those other people lack. You might even occasionally be right. But generally speaking the odds are that they understand something you don't, not the other way around.

Specifically to your Theranos point, Theranos was never public. Conning individual investors out of private investment money is somewhat different since the people who saw through the bullshit don't have an easy way of profiting off of that sense. The options were to buy in or opt out, and plenty of investors wisely decided to opt out but there was no play for them to profit off of the collapse.