What would you do - if you saw this happen?

Back to your original question: "what would you do...?"

Why should you feel the need to do anything?
 
To me I would imagine the 152 expected the Cub to pop back up as he was clearly doing touch-n-go wheel landing work. Pour on the coals and the Cub will jump up 250 feet in a blink of the eye. To go around puts him on top of the Cub and probably in a much worse position then landing short behind him.
 
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