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indi wrote

Sounds like you're thinking of "The Republic of Minerva". It was supposed to be a libertarian paradise founded by a real estate millionaire. But as recent history has shown, real estate millionaires don't exactly make competent leaders.

They brought loads of sand on barges to build up the reef and create an artificial island.

Going from memory, it was invaded by Tonga. It was a bloodless "war", though shots were fired; the American libertarians didn't really put up much a of a fight. Turns out the right to bear arms sounds lovely to libertarians only up until the point someone else exercises that right and starts shooting back at them.

Well, it was almost a bloodless war. Apparently, the Tongan "soldiers" sent to drive away the Americans were actually just conscripted convicts. While celebrating their victory and dancing on the ruins of their vanquished enemy, they got a little drunk, and a couple of them got violent, and two (?) ended up dead. They were buried on Minerva; the only people to die there.

Today, I believe the entire artificial island has completely washed away. Libertarian groups have, from time to time, attempted to reclaim the island, but none have been successful. They've learned the hard lesson of Minerva:

You don't fuck with the Tongans.