It went down on poor earnings call. Layoffs were probably an attempt to soften the blow. Hard to tell what was the effect, because the two happened simultaneously

This is the simplest and almost certainly correct answer.

I’ve seen this at a number of public companies, and is a reason I hate working for them. These decisions are always unbelievably short sighted and ruin companies in the long term.

What was bad about the earnings? Every metric I am seeing is beating expectations. Genuinely curious

Most likely poor forward guidance.

Wtf are you talking about? Investors are just gamblers with a fancier title.

They absolutely invest based on vibes.

then why did the riveting stock analysis above mis-predict the market?

Because the market makes no sense. It's just vibes. Trying to make sense of it is a fool's errand.