No, the logical form of the argument is correct and does what it is supposed to do.
First, I try to adapt the logical form of the argument to your formalization. Then, I show that your formalization is missing something important, the quantifiers, to give a full account for the logical structure of the proof argument.
The proof you cited shows that if the condition about limits is fulfilled (the $Q \implies R$ part of your formalization, i.e. for every sequence $\{x_n\}_{n\in \mathbb{N}}$, if $\lim_{n \to \infty} x_n = a$ then $\lim_{n \to \infty} f(x_n) = f(a)$), then $f$ is continuous in $a$ (the $P$ part of your formalization). The proof uses the technique called "by contrapositive": it supposes that the function $f$ is not continuous at $a$ (i.e. it assumes $\lnot P$) and then it shows that the condition about limits is not fulfilled, i.e. it shows that $Q \land \lnot R$ (which is equivalent to $\lnot (Q \implies R)$).
Indeed, the proof argument shows that there exists a sequence $\{x_n\}_{n\in \mathbb{N}}$ such that $\lim_{n \to \infty} x_n = a$ (i.e. $Q$ holds) but it is not true that $\lim_{n \to \infty} f(x_n) = f(a)$ (i.e. $\lnot R$ holds).
Note that this part of the proof you quoted is maybe badly worded and a bit confusing. You do not suppose to have a sequence $\{x_n\}_{n \in \mathbb{N}}$ such that $\lim_{n \to \infty} x_n = a$ (the phrase "Also $\lim_{n \to \infty} c_n = c$" is misleading there, because the sequence $\{c_n\}_{n \in \mathbb{N}}$ is not defined yet). Instead, you construct a sequence $\{x_n\}_{n \in \mathbb{N}}$ for which it turns out that $\lim_{n \to \infty} x_n = a$.
How?
Since $f$ is not continuous in $a$ by hypothesis, we know that
$$\text{there is $\varepsilon \!>\! 0$ such that, for all $\delta \!>\! 0$, $|x - a| \!<\! \delta$ and $|f(x) - f(a)| \!\geq\! \varepsilon$ for some $x$}\tag{*}$$
For every $n \in \mathbb{N}^{>0}$, let $x_n$ be the real number such that $|x_n - a| < \frac{1}{n}$ and $|f(x_n) - f(a)| \geq \varepsilon$.
Such a $x_n$ exists thanks to $(\text{*})$, by taking $\delta = \frac{1}{n}$.
From that definition of $\{x_n\}_{n \in \mathbb{N}}$, it is immediate to see that $\lim_{n \to \infty} x_n = a$ and that $\lim_{n \to \infty} f(x_n) \neq f(a)$.
See also the proof quoted here to have an explanation of the argument that, in my opinion, is better than the one you quoted in the OP.
What is missing in your formalization of the logical form of the argument? The universal quantification about sequences. I guess this can partially be the source of your misunderstanding.
Indeed, a more faithful formalization of the proof argument would be of the form: we assume $\lnot P$ and we show that this implies that $\lnot \forall s (Q(s) \implies R(s))$, which amounts to show that $\exists s (Q(s) \land \lnot R(s))$.
Here, by $Q(s)$ I mean that the sequence $s$ converges to $a$, and by $R(s)$ I mean that the limit of $f$ applied to each element of the sequence $s$ is $f(a)$.
Said differently, in order to prove that the function $f$ is continuous in $a$ (i.e. to prove that $P$ holds), it is sufficient to prove that for every sequence $s$, if $Q(s)$ then $R(s)$. By contrapositive, it amounts to show that if $\lnot P$ does not hold, then there exists some sequence $s$ such that $Q(s)$ and $\lnot R(s)$ hold.