These harms can be diffuse at massive scale, and acute at small scale.
One example of each: (1) https://www.science.org/doi/abs/10.1126/science.aax2342 One of USA’s largest health insurers builds ML system for patient triage. It optimizes for a proxy metric of health need (namely, cost) rather than health need itself; consequently it deprioritizes and systematically excludes millions of people from access to health care.
(2) https://en.wikipedia.org/wiki/Death_of_Elaine_Herzberg Autonomous Uber car builds their braking system on top of a vision model that optimizes for object classification accuracy using categories of {"pedestrian", "cyclist", "vehicle", "debris"}; consequently it fails to determine how to classify a woman walking a bicycle across the street, as a result killing her.
In both cases, optimizing for a naively sensible proxy metric of the thing that was truly desired turned out to be catastrophic.