Let's try this again. Your argument is that the free market does not work to provide the best outcome because one person tried to apply his interpretation of the free market in his business and the free market eliminated his business.

If you are of the belief that this person's management skills were suboptimal, then you admit that the free market solved this problem by eliminating his business and allocating his capital to more competent business owners.

To admit that you do not agree with this person's management skills is to admit that the free market works to move capital from inefficient to efficient actors.

Moreover, to admit that this person's management skills does not lead to a contradiction in terms. Just because I believe I have found the perfect way to apply free market principles to my business does not mean that is the only way, or even if that is a truly free market way.