This guy was running a heavy short selling portfolio on Volkswagen and got caught in a bull market.
Sad for the family, but maybe if he had stuck to his productive businesses instead of trying to score easy money in speculation, things would have turned out differently.
"To speculate in stocks when you are no longer an insider is like buying cows by candle light." - Daniel Drew
It's likely that he wanted or thought he needed a quick liquidity boost for his main business that he had trouble refinancing because of credit freeze, and got caught in a brief but horrendous short squeeze. He ended up on a "short" end of the stick, and instead of raising the capital and boosting liquidity, he lost $500+M which did even more damage to his financial situation. That also may have contributed to his sense of helplessness or failure.
True, he engaged in a gamble - not the most sensible way to make money, especially when one is in desperate need of it.
"The market can stay irrational longer than you can stay solvent" - John Maynard Keynes