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This guy couldn't handle a risky investment so he made an even more risky investment.
It's not just only the crypto ... he clearly has a gambling mentality. He's investing in specific areas of the economy, into specific business ventures, chasing hype.
Also, you are surprised by "twice" but actually having and then losing in a market makes you want to jump back in to recover "lost" money. In gambling its chasing or martingale bets. The more you lose, the more desperate you become. It sucks because this dude inherited $200K which changes most people's lives (and probably could have fixed his mortgage issue) but he was so into the gambling mentality that he couldn't just accept the windfall.
I worry we have a generation of young adults who have only ever seen markets as gambling.