This is exactly it.
Consider a scenario that's likely fairly common given experiments I've done in the last several years. Say a site people still use to talk to/keep in touch with friends sometimes like IG/FB decides a user is "toxic" and either shadowbans them, or starts hiding their posts from friends. Maybe it isn't even because of a bad interaction, maybe the algorithm just decided their "content" wasn't suitable to be towards the top of this user's followers' feeds.
What would that look like to this user? It'd look like their friends were ignoring them, weren't interested in them, etc., possibly leading to depression (which has been proven pretty undeniably that high levels of social media use in teens results in higher levels of anxiety and depression).
The fact that people en masse are not pointing out how ridiculous this is, that a social media site can have such enormous influence on one's perception of "reality" is staggering and it should die and die quickly.