Precisely!
The homeowners never purchased the lake. They have been enjoying a windfall. The Speculator purchased the property for $1,000. He now enjoys a windfall. This case is nothing more than which party gets to enjoy the windfall. Since the homeowners paid nothing and never obtained title while the speculator did, the law will be on his side.
Until the law gets changed. That's what happens when dolts such as this push beyond reason and good sense. The soccer moms and socialized elderly rise up, agitate for new legislation, the law gets changed and we end up with more--not less--socialism.
Gloat on his behalf all you want. Live it up now, because within a few years neither he nor any other property owner in his neck of the woods will have the law on their side.
"The Speculator" should be pushed into the lake. I hope that the aligator is not too picky.