That's incorrect. See "7 FAM 1131.6-1 Status Generally" and "7 FAM 1131.7 Citizenship Retention Requirements" in the Foreign Affairs manual of the U.S. Department of State.
I agree that there are only two classes of citizens: born and naturalized. There are, however, multiple paths to each class, most with separate and distinct requirements.
You are talking about a U.S. State Department administrative rule for its Bureau of Consular Affairs codified in the Foreign Affairs Manual (Volume 7), not a law passed by Congress and signed by a president.