The deeper lie is that libertarianism is right wing. So-called right wing Libertarianism is fallacious - ultimately a product of the corporate neutering of political organization just like the main parties.
I certainly understand why right- "Libertarianism" is highly appealing - stick to these small core set of axioms, and you will be free, and everything that appears to be bad will actually be justified because it's merely a result of people exercising freedom. It makes it sound like we just need to simplify things. If we just perform a rewrite and avoid giving into the temptation to make bloat, don't you know we will all be free?
The fallacy is easy demonstrated, but requires the reader to suspend the mainstream indoctrination asserting a dichotomy between government and corporations (promulgated in the "Libertarian" dogma by the lemma that a corporation is definitionally incapable of exercising coercion).
In actuality - a government is a corporation, and corporations can exert coercive power like government. What we consider a corporation is merely a partial version of what we consider a government. If we're in need of a particular product or service and there are many corporations to choose from, we feel more free (just as if we could choose between multiple governments!). If there are only a handful of corporations to choose from, especially if the executives all implement similar policies in lockstep, then the dynamic feels much less free. If there is only one corporation to choose from, then we have a de facto government that can coerce us up to the limit of needing that product/service.
Essentially any authoritarian/totalitarian government can be transmuted into an axoimatic right-"Libertarian" utopia simply by reframing its government as a singular corporation with which every citizen has a lifelong contract of onerous terms. And so the only way to approach libertarianism is to set the metric as a society's constructive outcomes for its citizens having effective freedoms.
As for the original topic, the Thiel quote shows that Thiel never actually was a libertarian, or at least least as long as he's been relevant. Rather the only "freedom" he is interested in is his own "freedom" to coerce others. And as he's gained more power, that "freedom" mask has been slowly flaking off.
This is the exact shape of Silicon Valley's surveillance industry as a whole - "disrupting" the world merely to make centralized web/apps that exert fine-grained top down control. "Freedom" for their founders, not for their users. That's not freedom, it's just new systems of control. And now that this new crop of nouveau riche have entrenched themselves, they want to shamelessly start exercising their power.