That's not squatters logic any more than you're a squatter in your own home if you refuse to sell even if a generous offer comes along because you value your home a lot more than even an above market offer, but you'd still likely sell at 100 times valuation. Again, that doesn't make you a squatter, just someone holding on to something and saying "If you really want this, you're going to have to offer me something grand, and I know you can afford it, otherwise I'll hold on to it".
I mean there are a lot of differences here, primarily that you by definition don't own domains you lease them to use, but yes that'd also be its own flavor of extremely uninspiring story. Holding out to get the value something is actually worth to you before you give it up is great and interesting but that's not the reason they gave.
