I am not a Real Estate Investor, but I am a little confused who the bad-guy is in this situation. Why is it the investor and not the person who ends up paying t

I am not a Real Estate Investor, but I am a little confused who the bad-guy is in this situation. Why is it the investor and not the person who ends up paying top dollar for the flipped "move in ready" home? It seems like the consensus here is usually that "the market" is a good thing, and I am not sure why this case is different.