I am happy that John won, but I am happier that Phil lost.
Does this mean:
1-Phil's losing makes me happier than John's winning.
or:
2-Phil's losing plus John's winning makes me happier than John's winning alone.
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I am happy that John won, but I am happier that Phil lost.
Does this mean:
1-Phil's losing makes me happier than John's winning.
or:
2-Phil's losing plus John's winning makes me happier than John's winning alone.
#2.
The speaker has a dislike for Phil, apparently, and even though he is happy to see John win, seeing Phil lose gave him an additional feeling of satisfaction.