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On the other hand...
Squadron clearly doesn't need to take PAC money, as he has quite the warchest without it. To date, Connor has raised less than $150,000, while Squadron has raised three times that much (about $430,000 as of July 11, plus whatever he has raised in the past four weeks).
From a tactical standpoint, it probably makes sense for Squadron to call on Connor to return about 20% of his contributions. That's how electoral politics is often done. Even though raising this issue probably won't make much of a difference, it will certainly make some difference, and that's most likely why Squadron's campaign chose to do it.
Of course, if we had full public funding of elections, this issue would never come up. Just thought I'd mention that.