If he was unstable due to a disease, maybe it could be considered tragic. As for Mysterio's grand scheme, we still don't know the specifics of Doc Strange's desmemorizing spell: Strange said that everyone would forget Peter Parker, but maybe still everyone thinks Spider-Man killed Mysterio and that Mysterio died a hero. Only his video of him saying Spidey's identity was likely altered: perhaps by cutting short just as he tried to say the name.