Fair Vote?

Consider an IRV election with three candidates, A, B, and C.

Let's say candidate A receives 40 first-choice votes; candidate B receives 35 and candidate C receives 25.

Since no candidate received 51% of first-choice votes, candidate C is eliminated and those 25 ballots are re-counted for second choice votes and a new total is then tallied.

If 16 of those votes go to candidate B, and 9 go to candidate A; candidate B is declared the winner with 51 votes.

In this example, those voters who preferred candidate C had their first and second choices counted while those voters who preferred candidate A had only their first choice votes counted.

This clearly indicates a flawed system.