David said:

"The 30 people that dont win or come second pay out those 30 chips."

Key words are: "don't win" "come second"

Second place didn't win, (along with 30 others) so he should pay the first place winner. That means there are 31 chips involved. Right?

And first place should pay second place. (along with 30 others) Again, 31 chips involved.Right?

In which case, we're still a couple of chips short of a full stack.

After all that, i'd say you're right if first doesn't pay second and second doesn't pay first. Then there are only 30 chips involved.

Now my feet AND head hurts. I'm going back to bed. It's midnight here.