So now the real bet he lost is salary + time for all those years he is going to prision + lower job for decades after prison. This person bet Millions to get $1M basically and lost both, very rare gambling level lost from smart(used to) person. At least normal gambler loses what they have and some debt.

He was Staff-level as well. That's minimum $500k a year or more. And tenure often grows pay disproportionately at Google. That's easily $20 million lost.

You're making a bold assumption that this is the first time they're making money off of these bets.