The risk of losing all of your capital from a cash secured put is the same risk as staying long on a stock and seeing it go down to zero. That risk is not unique to the cash secured put.
Selling a cash secured put for Nikola and holding onto Nikola shares presents the same risk of the invested capital becoming $0, a realistic scenario for Nikola stock. Investors should only sell cash secured puts for stocks and ETFs they'd be happy to own.
With covered calls and cash secured puts you can't lose months/years of return in a single day unless the underlying stock goes down that much. Since this risk revolves around the underlying stock, it would also affect people who simply buy and hold.
Uncovered calls are a unique options trading risk where you can potentially lose far more than you invested. Every investor should stay away from those.