Actually, it's for any number of people. For example, if you were in a 4-person match and the rankings were:
1. Four-star 2. You (two-star) 3. Three-star 4. One-star
You would lose 1 point for losing to the two-star, 6 points for beating the three-star, and 2 points for beating the one-star. So combine that, and you get