“Overcapacity” is always such a tip-off to bogus markets anyway.
If there is overcapacity the free market ought to shake that out. If some investors and players erred by building more market capacity than their products have market appeal, so be it.
Purchasers likely gain from that until competition in the market leads to those with too much capacity to demand needing to reduce their capacity in order to survive.
In this case it isn’t so much a bogus market, just a downturn in demand due to lower discretionary spending