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The concept illustrated with houses: https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/wealth-destruction-1 … In this case, the underlying asset is Gamestop, rather than houses, and you have margin trading and short-selling acting as the leverage instead of bank loans, but I *think* the principle is the same.
Entirely possible I have some core concept wrong here, but I don't see why stocks, as an asset class, wouldn't work similarly (albeit on a smaller scale, both since Gamestop is not the housing market and also the leverage available to stocks is, in theory, much less)
Note the end of the second video - "where did this money go? It was consumed!"
ie "real" loss comes from investment into activity that proves worthless. See also all the BS companies of the dotcom bust.
On these short timescales... 
The situation is not analogous IMO. At least not yet. The wealth destruction happens from poor investment due to a perceived higher price. If people think GameStop is a valuable company they might create more GameStops which would be wealth destruction, but that takes more time.
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