I said it in the other thread, and I'll say it in this one - the real problem here is we've raised a generation of people incapable of personal responsibility or dealing with failure. Nothing is their fault, and they should be given a prize even if they don't win. How is someone of limited mental stability going to react when the real world charges in, where there are really mean people who will hurt you every day, and there are no prizes for participation?
I have vivid personal memories of this problem rising, even in my own childhood. A certain year, my elementary school had a field day with competitive events. There were blue ribbons for first place in these events, red ribbons for second, yellow for 3rd, and white ribbons for everything below. It was a lot of fun.
The next year's field day... everybody got blue ribbons no matter the outcome of the event. Even at that age we all could plainly see what was going on, and agreed it was absolutely stupid.
When a child who has been given metaphorical blue ribbons for everything he ever has done (or failed to do) becomes an adult, where results matter and everything has consequences, is it really so surprising that he is absolutely incapable of dealing with the shattering of his comfortable world?