If everyone is supposed to have made money, where did that money come from?

Just because the market cap of Bitcoin is 520.50B, doesn't mean 520.50B has been invested into it.

Basically, as long as the price of Bitcoin is >0, more was won than lost. It's now at 25k, so a lot has been won.

So still in another way: if you bought bitcoin with fiat, your bitcoin now is still worth 25k

Money is not created out of thin air. There's electricity to mine, there's funds investing in crypto, there's fiat used to pay ransoms... All this means real world money got spent.