Ok, I'll fill in the blanks here. The race to the bottom happens because other coaches and players see Curry practicing and playing on a schedule that's unhealthy and feel that they need to do the same thing, so they also fail to recover from their injuries.

So yes, overworking does create a race to the bottom.

To pop up a level, your comparison is very bad. In Twitter's case, the "model" behavior is that engineers are working longer hours, and not whether they are producing better results. A better analogy would be a sports player who trained extra hard and extra long, but didn't improve their level of play, but still all other players were expected to work extra long hours anyways.