It's a funny, but true term. Allow me to borrow it for gamblers as well because they too make use of such words after a game that before it met it's fall, had good prospects and promise but it eventually gets knifed. Life is filled with risks and as a trader you don't just put money into any new project that shows promise without making your research and if you're putting, it's not all your funds because should the unforseen occur, that's your life's savings gone down the drain.
 Many people due to poor decisions often find themselves using this acronym you coined out Op. The key to winning in business is to understand that although bad days do happen, it's how you prepare for and against it that matters.

In my opinion you won't experience those worst trade if you didn't join to those panic people which sell their bag when there's a dump happening. Choosing to hodl and wait for recovery or next time pump would be more advisable especially if they doing spot trades. But for sure there would be nothing to recover if they are trading in futures since risk to get liquidated on bad trades is high so people should check what are the consequences and if they can handle this  scenarios if there's certain issues happening on their trades.

But for me I don't like to get involve in this situation that's why I choose to hodl Bitcoin rather than trading it.