They're saying that "contagion" is where people not even related to the failure are getting hurt. So if an innocent person who put money into FTX loses it, that

They're saying that "contagion" is where people not even related to the failure are getting hurt. So if an innocent person who put money into FTX loses it, that's bad, but not "contagion" since it's still limited to people who were directly related to what was going on. But if FTX were to collapse, causing other failures, and now someone who has never heard of crypto or FTX loses money in their ordinary money market account or something, that would be contagion.