It plays out as companies that cannot reduce their costs enough to be operationally profitable will exit the market or be bought for pennies on the dollar. So something like uber getting bought/absorbed by a cab company. Options/stock will be worthless in the dead company. Several VC companies will report large fund losses and investors in those funds, and possibly a LP or two will get out of investing completely. Some folks who thought they were set for life will discover they have to get high paying jobs to support their personal burn rate. They won't be able to and it will change their life, bankruptcy, divorce, suicide.

For most people it will be a non-event, they wondered how people could invest in a company at those valuations and so won't be surprised when they lose their investment.

It will be really really hard to raise money for a while. Perhaps as many as 6 or 7 years. Companies that depended on new startups like digital ocean will have large layoffs as they cut costs to stay profitable.

Anyway, that is my guess. We get to see how it plays out.