Origin is probably the same as such accepted customs as holding up colorful arches for the Kalla to walk thru as she enters the hall for the first dance, raising the chosson (sometimes also kalla) up on a chair, etc. People think it is fun and adds to the simcha.
Note, while Lost my sparkle’s story might be an extreme example of what can go wrong with confetti, it can also be dangerous because it makes the dance hall slippery. Not to mention how annoying it is to remove it from the Kalla’s dress.
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