1. Vast amounts of all types of fraud
2. Terrible legal and regulatory environment
3. Political instability
4. Surreal cost burden at every junction of the productive process (cheapest car in Brazil for example is USD 15000, which is the same price as the cheapest car in the US)
5. Zero customer loyalty, people jump from service to service to obtain a 0.01% discount
Everywhere. Argentina and Venezuela due to need, Brazil due to the criminal opportunities it offers. It's even a running joke in Brazil that every week they arrest a new crypto-pyramid ring leader and give it the name "Sheik of Bitcoin", "Pharaoh of Bitcoin", etc. the press is running out of royal titles to give out.
I am from LATAM and I would treat the region the same way as you're pointing out - like it has the plague. There is so much regulatory and legal uncertainty, not to mention the sky-high costs at every junction, that it's nearly impossible to build profitable, high-quality companies in the same way it happens elsewhere. I give credit to Nubank for being an exception, but everything else has been such a massive bust.
The photo on the Tweet looks incredibly disturbing. His face and head seem like they have been planted on someone else's body; even the colors are different.
Two things that never left my memory from watching this in my childhood: the lady eating the Guinea pig, and the reporter sneakily entering the alien spaceship with a massive VHS camera (because there was nothing smaller).