I think it's a case of bad optics. Most leveraged ETFs or ETFs that hold futures and constantly pay roll costs just slowly decay. They're not suitable for the average mom & pop, but holders have ample time to see their investment going poorly and get out. It's hard to feel super bad for them and they're less likely to complain loudly.

Meanwhile XIV did the complete opposite. Because of the VIX futures term structure it was actually earning roll premium most days. That plus declining volatility caused its price to march steadily upward for almost two years. It looked safe and some people put lots of money in, even bought on margin. Then one day they lost 80-90% with much of the losses in after hours trading.

It's like the difference between a company having kinda crappy management that spends too much on executive perks vs. outright fraud like Enron. Sharp moves that wipe people out completely without warning will get outsized attention.