In the California interview, after telling you that California does not allow the deduction of HSA contributions (which you already knew), TurboTax shows you a screen with the title of "Here's the income that California handles differently".
Below the subheading "Investments", you will click on Start for "Health Savings Account (HSA) Earnings".
The next screen will ask you for interest from the HSA, dividends, and net capital gain or loss from HSA.
You enter the capital loss as a negative number, and the loss flows to Schedule CA (540) - California Adjustments.
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