Sometimes I think that Moldbug is an extrapolated libertarian. The world he describes seems to me as something that would naturally happen after a few iterations of the libertarian paradise.

The "unextrapolated" libertarians imagine a balanced market of power, forever. But in real life, local monopolies sometimes happen. Each such monopoly would create what Moldbug calls "sovereign" -- an entity with unlimited power over their resources (including people), but still acting as a participant in the outside market. For the outside market, cooperating with the sovereign, or even just ignoring them, could be a more profitable option than fighting them. (Evidence: What does an ordinary western citizen think about freedom in China? And what about buying cheap products from China?) Moldbug is a few steps ahead; he thinks about what makes sovereigns internally weak or strong.