"The common person always loses when bubbles burst."

That is a tautology, because you define the "common person" as the person who loses.

I'm sure there were people who made good money in the 2008 housing bubble. Didn't they all live like kings for a while, because they could borrow arbitrary sums against their houses?

Similarly, some people may make good money on that GameStop thing now.

The "common people" who didn't participate in this will probably never even notice. At most they'll notice that their favorite shopping mall is closing, but that is part of a larger trend. And they can now shop on Amazon instead, so their quality of life probably remains the same or gets improved.