It is you. Your human nature, that is. Humans are not rational. They panic, they get greedy, they herd, and the list goes on.
That is why value investors avoid companies with a lot of debt as they will go bankrupt and in this case we have permanent loss of capital. Same is also true when you invest on margin, you may have permanent loss of capital as you may be forced to sell at a point in time that such an action is not desirable. But modern portfolio theory emphasizes volatility as a measure of risk, as it is something that can be measure, irrespective of whether it is a correct definition of risk or not.
In this COVID 19 environment, companies that are well managed with the right business model and little debt have nothing to fear. But this is not how the markets price them. The value of a stock is the present value of future cash flows to infinity, for companies without financial distress.
globeinvestor Big uptick in photos of anxious stock personnel looking at screens. Futures
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