Same kind of people who lie all the time to look good to others. Some people want to be awesome but know they suck, or even more pathetic don't suck but can't stand not being the best, and cheating is their pathway to getting the social results of being awesome without needing to develop the skills.

The way I've seen it for ages now, being a loser isn't just about losing games, it's how you handle losing games and how much you internalize that. I see it as short for "sore loser". Cheaters are losers in that sense.

Though it makes the idea of them still losing despite cheating even more hilarious, which is why I love the idea of games that detect cheaters but stick them in cheating queues instead of just banning them.