You seriously don't know? Here's a good explanation of how they work:
Learn the differences between proxy vs. VPN and pick the best for your business. When it comes to data privacy, which is better—a proxy server or a VPN?
www.fortinet.com
This does not make sense. A proxy is something entirely different than a VPN.
And actually the article seems to advertise products for criminals who want to hide their identity and collect data about other people.
This is none of my business. In the old times, any university could get their class-B segment, and any coffee-maker on the campus would have it's own globally routeable fixed IP address. Then for a long time this was not possible anymore, because we would only get a single IP that is dynamic.
Now with the advent of IPv6 it is possible again. Now finally, all my machines run on static globally accessible IPs. Because I'm not a criminal, and neither paranoid.
When you travel, but want to pretend you're still connected to your home LAN, you use stuff like
security/openvpn to connect via a VPN proxy server. It can be a public server (Commercial VPN provider) or a private one that you set up yourself for tunneling into your own LAN from outside.
This is exactly what I am doing. For instance when I am on travel or in the garden, I connect back to my home via VPN, so I can access my computers the same way as if I were at home. Consequentially, as a side effect, when I surf the internet, this will also go to my home first and then from there into the network, so it looks very much like I were at home.
Now the essential point: when reddit does spy on people and try and figure out if they are actually at home, or are somewhere on travel and connect to their home via a VPN, then what do they do with that behavioural data they collect? (Besides that this is most likely to be considered a criminal activity.)