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A possible line of reasoning is that drugs should be legal, but the property and violent crimes committed around them shouldn't be, in the same way that adults are legally permitted to drink alcohol, but they're not legally permitted to drive drunk. The "ruining cities" is about the crimes, not the drugs themselves.

(I think.)

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> But it seems they don't have a problem with someone running an illegal underground drug smuggling network because...?

People have a soft spot for enterprising wunderkinds of certain demographics, even if he wasn't actually a kid when he start SR.

A good boy like Ross doesn't belong in prison, but the person arrested for smoking crack does, is a common sentiment.

Most libertarians considered the Silk Road a place to buy psychedelics like LSD or mushrooms or experimental synthetic drugs (not that these don’t come with numerous risks). Not a bulk heroin warehouse. So the perception is different from that of a wholesale fentanyl clearing house.
Just because the far right complains about 'drugged out zombies' ruining cities thanks to drug smugglers from Mexico, doesn't mean libertarians think that. Libertarians have been opposed to the "war on drugs" for decades.
Well for one, Libertarians are not far right in the way you are describing...
They've gone full doublethink, like when Trump claimed Jan 6 was done by antifas, but then pardoned them all and no one seemed to remember.