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In the article it says:

“Sleep deprivation really has opposite effects in healthy people and those with depression,” says Benedetti. If you’re healthy and you don’t sleep, you’ll feel in a bad mood. But if you’re depressed, it can prompt an immediate improvement in mood, and in cognitive abilities.”

Sounds like the theory relies on distraction to provoke attention away from depression. "Look at that shiny thing over there". Unfortunately the shiny thing is the effect of unhealthy sleep deprivation.

exactly the same. Just one nights poor sleep and the overcompensation of the mind makes life a living hell. Anxiety, depression and feeling like in a haze is absolute torture.

Poor sleep I would think is different than no sleep. The nights I get poor sleep, approximately 2~3 hours or less, the following day would be nothing but intrusive thoughts, depression about those thoughts and exhaustion. The nights I had NO sleep the following day all of those symptoms would virtually be gone.

Exact same experiences here. As soon as I start to develop a sleep deficit, all those negative feelings come racing back.