Pirate's returns are high because the market hasn't been saturated yet, and the market itself is also growing rapidly - two factors that synergistically amplify the growth rate.
If all Pirate is doing is facilitating bitcoin market growth, then in the long run, doesn't he end up shooting himself in the foot as prices rise and he continues to buy back in to repay lenders? Wouldn't all bitcoin holders benefit the same, due to the eventually price correction (rise)? It seems like the main theory out there (besides ponzi) is that he is simply bypassing the public market for a premium. But all of those bitcoins will come back around in the end.
What I'm trying to say is, isn't that a zero-sum game?