Let's see where things go wrong. I'm going to assume my logarithm has a branch cut along the negative $x$-axis as per usual (and that we're looking at the principal argument where $\theta$ is between $-\pi$ and $\pi$ for symmetry). If $z = re^{i\theta}$
$$\log(z) \stackrel{\text{def}}{=} \log r+i\theta.$$
With a branch cut, $-z$ is a little ambiguous. If $\theta < 0$, then $-z = re^{i\theta+i\pi}$. If $\theta > 0$, then $-z = re^{i\theta-i\pi}$. Let's consider each case separately.
Case 1: $\theta < 0$, then
$$\log(-z) = \log(re^{i\theta+i\pi}) = \log r + i(\theta+\pi).$$
Note that this is most definitely not the same as $\log(z)$.
Case 2: $\theta > 0$, then
$$\log(-z) = \log(re^{i\theta-i\pi}) = \log r + i(\theta-\pi).$$
Similarly, this is not the same as $\log(z)$.
The question then becomes: where's the faulty assumption in his proof?
Clearly $(-z)^2 = z^2$ is true but complex logarithms no longer obey $\log(ab) = \log(a)+\log(b)$ in the usual way. If $a = r_1e^{i\theta_1}$ and $b = r_2e^{i\theta_2}$ (let's say neither of them are pure imaginary), then $\log(ab) = \log(r_1r_2 e^{i\theta_1+i\theta_2})$. What this evaluates is heavily predicated on what $\theta_1$ and $\theta_2$ are.
Suppose $-\pi < \theta_1+\theta_2 < \pi$, then indeed $\log(ab) = \log(r_1r_2)+i(\theta_1+\theta_2)$ which agrees exactly with $\log(a)+\log(b)$.
However suppose that $\theta_1+\theta_2>\pi$, then similar to above above, we would have that $\log(ab) = \log(r_1r_2)+i(\theta_1+\theta_2-2\pi) \neq \log(a)+\log(b)$.
If instead $\theta_1+\theta_2 < -\pi$, then $\log(ab) = \log(r_1r_2)+i(\theta_1+\theta_2+2\pi) \neq \log(a)+\log(b)$.
If you restrict to the case that $a = b = -z$, the above analysis would read that $\log((-z)^2) = 2\log(-z)$ if (and only if) $\theta < \left|\frac{\pi}{2}\right|$ as Did mentions below. So really the discrepancy is due to the periodic nature of $e^{i\theta}$ (and hence the multivalued nature of $\log$).