Here is an explanation from Wes Wagner on the events in his state of Oregon. It was written June 3, 2011.
Essentially what happened is summarized as thus:
During our 2010 convention, the party having been tired of our numerous structural issues adopted a plan for reformation of the party with a 2/3rds+ majority — established a committee to draft new governing documents and schedule a special convention in November (after election day so everyone would be done with their important work)
Everything was going smoothly until Richard Burke, a paid employee of Americans For Prosperity and former executive director who was forced out of office due to financial scandal did not like that the new party would be controlled by all 13,000 libertarians in the state of oregon and not a handful of corrupt apparatchiks.
He proceeded to call in Alica Mattson and Mark Hinkle in an ambush on the November convention (with assistance of M Carling) to enforce an esoteric interpretation of quorum on the convention in order to prevent the 2 day long discussion and debate that was going to otherwise occur. (their pro-republican activities require a vacuum of communication, otherwise people get wise to them) (Further ther was a last minute drop of 15+ new voting dues paying mambers who were all associate with Americans for Prosperity to force the issue)
After that convention failed for a lack of a quorum, and the subsequent march regular convention also failed for lack of a quorum the State Committee adopted the proposed new constitution and bylaws because it was the last body that was capable of acting in the state of oregon since the members could not meet due to quorum issues and the judicial committee was defunct. Oregon state law supports the action we took, although we had preferred it not be necessary and attempted reconciliation on numerous occasions only to be told that debate would not even be allowed.
The vote for its adoption was unanimous and we were then left with a party that was owned by all 13,000 voters in Oregon and a governing structure that was able to work again, and one where all the people in the committee are accountable to every libertarian voter in Oregon.
This greatly aggrieves some people who see the party as their personal plaything for advancing their personal version of libertarianism, and they thus decided to take a creative view of robert’s rules of order and the prior governing documents and still hold a convention that had been cancelled, conscript members of the national party to assist them, and try to steal the party by submitting false documents to the Secretary of State.
This action has failed because the Secretary of State is very bureaucratic and follows the law as it is written — not the creative ideas of a few neo-con friendly interlopers.
This issue is that I have been removed from the State Chairs list and the people at the national party think it is a good idea to continue down the path they have started (even though they have already lost) in order to act like what they did was somehow right.
At this point given this and the other numerous stories I have heard, I am going to soon raise the call to start an exploratory committee for the purpose of forming a new national organization. There are many states that have been similarly aggrieved and do not receive any benefit from national since we already have the capacity to either have permanently secured our ballot access or are self-sufficient.