How is it a disaster? They still control the app, and now they can adjust the algorithms to dampen down on discourse they don't want. So what if they lose a chunk of the audience, they can force a sale of whatever app those people move to too.
What if people are moving to "No App"? Social media is becoming uncool, especially with all the government involvement lately. I wouldn't bet a small sum that many of those quitting Tiktok are done with social media.
"No App" is still a completely acceptable result, they didn't buy tiktok to make money, they did it to stop people talking about things that the owners disagree with.