This is only influencing a local government, not establishing a sovereign state, but it's in that direction of failing by its own ineptitude: https://www.vox.com/policy-and-politics/21534416/free-state-...

"...

Sean Illing: And how did they take over the local government? Did they meet much resistance?

Matthew Hongoltz-Hetling: When they first showed up, they hadn’t told anyone that they were doing this, with the exception of a couple of sympathetic libertarians within the community. And so all of a sudden the people in Grafton woke up to the fact that their town was in the process of being invaded by a bunch of idealistic libertarians. And they were pissed. They had a big town meeting. It was a very shouty, very angry town meeting, during which they told the Free Towners who dared to come that they didn’t want them there and they didn’t appreciate being treated as if their community was an experimental playpen for libertarians to come in and try to prove something.

But the libertarians, even though they never outnumbered the existing Grafton residents, what they found was that they could come in, and they could find like-minded people, traditional conservatives or just very liberty-oriented individuals, who agreed with them on enough issues that, despite that angry opposition, they were able to start to work their will on the levers of government.

They couldn’t pass some of the initiatives they wanted. They tried unsuccessfully to withdraw from the school district and to completely discontinue paying for road repairs, or to declare Grafton a United Nations free zone, some of the outlandish things like that. But they did find that a lot of existing Grafton residents would be happy to cut town services to the bone. And so they successfully put a stranglehold on things like police services, things like road services and fire services and even the public library. All of these things were cut to the bone.

Sean Illing: Then what happened over the next few years or so?

Matthew Hongoltz-Hetling: By pretty much any measure you can look at to gauge a town’s success, Grafton got worse. Recycling rates went down. Neighbor complaints went up. The town’s legal costs went up because they were constantly defending themselves from lawsuits from Free Towners. The number of sex offenders living in the town went up. The number of recorded crimes went up. The town had never had a murder in living memory, and it had its first two, a double homicide, over a roommate dispute.

So there were all sorts of negative consequences that started to crop up. And meanwhile, the town that would ordinarily want to address these things, say with a robust police force, instead found that it was hamstrung. So the town only had one full-time police officer, a single police chief, and he had to stand up at town meeting and tell people that he couldn’t put his cruiser on the road for a period of weeks because he didn’t have money to repair it and make it a safe vehicle.

Basically, Grafton became a Wild West, frontier-type town.

Sean Illing: When did the bears show up?

Matthew Hongoltz-Hetling: It turns out that if you have a bunch of people living in the woods in nontraditional living situations, each of which is managing food in their own way and their waste streams in their own way, then you’re essentially teaching the bears in the region that every human habitation is like a puzzle that has to be solved in order to unlock its caloric payload. And so the bears in the area started to take notice of the fact that there were calories available in houses.

One thing that the Free Towners did that encouraged the bears was unintentional, in that they just threw their waste out how they wanted. They didn’t want the government to tell them how to manage their potential bear attractants. The other way was intentional, in that some people just started feeding the bears just for the joy and pleasure of watching them eat.

As you can imagine, things got messy and there was no way for the town to deal with it. Some people were shooting the bears. Some people were feeding the bears. Some people were setting booby traps on their properties in an effort to deter the bears through pain. Others were throwing firecrackers at them. Others were putting cayenne pepper on their garbage so that when the bears sniffed their garbage, they would get a snout full of pepper.

It was an absolute mess.

..."