It's certainly conceivable that Suga Sean will do Chito the way did Wineland and Teco. But how likely is it? And what if he doesn't? The current "post-suspension" iteration of Sean may be different, but I think Chito would absolutely drown the second and third round version of O'malley from the Soukhamthath and Terrion Ware fights.
For O'malley to win we need to see something we haven't seen before: Chito getting finished or O'malley being able to stay as accurate and sharp for three full rounds. At +240 I'd rather take a chance on Chito's ability to grind him down (probably for a late stoppage or a decision).
Also, the small cage should be to Chito's advantage. If Chito manages to push him up against the cage it will be very interesting to see how Suga reacts to the meanness and tenacity of Chito's clinch game.
I also like the long-game approach to betting Chito in this fight. If O'malley loses his hype will be deflated, and we might never get another chance to get an elite-level fighter as a sizeable dog against him. However, if O'malley wins in spectacular fashion he will probably end up a favourite against a top 5–10 bantamweight (a new opportunity to fade him?). A close and hard-fought decision win for O'malley could mess this tactic up, so I'm tempted to combine a bet on Chito with some cash on the overs.