Did it now? afaik if you only had one drive, and one partition, and had Windows installed there, and you didn't have enough free space, you lost everything. That's not exactly niche
Note that the reason that Microsoft failed to address it is because while a Feedback submission had been made, it didn't have any upvotes, because it was so niche that almost none of the Insiders experienced it. Despite the fact that Insiders are the sort of power users most likely to have fiddled with weird features like folder redirection.
Details are here: https://blogs.windows.com/windowsexperience/2018/10/09/updat...
But maybe you're referring to another bug.
Searching around for some sort of source, I found this article[1], which says "...some of my readers told me their hard drives were corrupted and thus were unable to roll back the update." Of course this may be hearsay and false information in times of panic, so I take the statement with a grain of salt.
[1]https://www.forbes.com/sites/jasonevangelho/2018/10/06/micro...
I seem to recall reading that the "improper use" in this case could also consist of using a program that hard-coded paths and was not aware of folder redirection.