I think of it like this:Say an IPO investor spent $20,000 to buy...

I think of it like this:

Say an IPO investor spent $20,000 to buy 100,000 shares (now worth $900). They thought maybe the company would have some incredible clinical results and hit $500m within 5-7 years. Then, unfortunately, large holders vote through a buyout of $1B. Nevermind, still a good return. Over that time, SOI have doubled, the investor gets $150k (7x).

Now, in the current scenario. Imagine that somehow CHM absolutely nail it from here and achieve 100x bagger to hit that $1B in a few more years. With these new SOI, the investor walks away with $43k (2x, some blue chips would do that return in 5-7 years).

But say we have another doubling of SOI before that happens (very likely over several years). The IPO investor, who invested $20,000 in a $66m company, walks away with $22,000 when the company sells for $1B.

Even worse for those who bought @ 30-40c. Imagine getting out at a loss with an apparently impressive $1B buyout.