What trauma? He threw a temper tantrum and quit. He wasn't at Mars, he was out saving Romulans.
It's an attack on the heart of the Federation that has killed more people than anything since the Dominion War. That will leave a cultural trauma that doesn't include the fact that it was Picard who forwarded the use of synthetic labor for the refugee project. Also, the trauma that nothing Picard can do will save the billions of people he COULD have saved.