According to this article, the South Carolina Libertarian Party will file a challenge to the general election ballot position of James Smith, who won the Democratic primary in June for Governor. South Carolina law says that if a candidate seeks the nomination of two or more parties, and any party rejects him or her, then the candidate cannot be the nominee of any party. See this story.
Probably the South Carolina Libertarian Party wants to lose this challenge. Losing the challenge would establish a favorable precedent, and demonstrate that the law is unclear, impractical, and senseless. No other of the ten fusion states has a similar law. The ten states that permit fusion in some circumstances are Connecticut, Idaho, Massachusetts, New Hampshire, New York, Oregon, Pennsylvania, South Carolina, and Vermont. States that have had fusion in the past 25 years, but no longer have it, are Arkansas, California, Delaware, South Dakota, and Utah. None of those states had a South Carolina-type restriction either.