Earlier quoted context omitted.
The objection was that you can't reliably tell apart the 99 from the 99.99 percentile with a common IQ test.
The difference between 99th and 99.99th percentile is 1.4 standard deviations, a common IQ test ought to be able to be accurate to that. Otherwise it couldn't measure the difference between 100 and 120 IQ (0 to 1.4z) which it clearly can.
Toy model: the test consists of one question that everyone in the top 1% can do and no one in the bottom 99% can do; one question that everyone in the top 2% can do and no one in the bottom 98% can do; ... one question that everyone in the top 99% can do and no one in the bottom 1% can do. This test discriminates very nicely and accurately throughout its range of applicability, but it will do no good at all from distinguishing a top-0.01% person from a merely top-1% person.
(Just as a tape measure 2m long will let you compare people very accurately by height provided they're no taller than 2m, but will be much less useful for people taller than that.)