You've got part of the modeling, but you missed the other part. The sway bar
is also reducing how much the outer wheel goes up into the fender well (bottoms
out, maximises negative camber, etc). It's inherent with reducing body roll
that the outer wheel doesn't move up as far, and the inner wheel doesn't move
down as far.
Now, get some good traction with the tires, apply side thrust from the
cornering action, and you can pop over the contact patch of the tire, jacking
the car. This is why it's critical that Spitfires sit low and maintain as much
negative camber in back as they can, doing so makes it harder for the car to
"jack" over the tire contact patch. A sway bar makes it easier for the car to
"jack" over that contact patch, and go spinning out of control.
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