Cancel culture happens because it works, and it not even be true. Until businesses, universities, and institutions say no to the digital mob, it will continue.
You can't stop mobs from forming or trying to do damage, but for sure we can attempt to shield society from it.
Businesses should learn to not panic when a mob calls for the firing of an employee. Often it's done in a blackmail scenario: I will stop using your products if you don't comply.
They didn't use your products in the first place, and if they did, they won't stop using them in numbers. The economic threat is a bluff. Call the bluff. Nothing happens. Then, just wait out the mob as they get impatient and move on to the next target. Stand like an oak, not like a twig in the wind. Don't let a bunch of weird anime avatars tell you how to run your business.
As this return of sanity will not magically happen, I would support legislation to offer employees some reasonable protection from mob terminations.
Universities are perhaps the hardest to fix. Students needs to be taught to be resilient, open to opposing points of view, understand the concept of a zeitgeist and stop seeing being offended as the end of the world.