Arnaldo Chamorro, a representative of Paraguay's Agriculture Ministry, has lost his job after announcing he'd signed a deal with the fictional United States of Kailasa, dreamed up by a Hindu cult leader who fled India's legal system. Arnaldo confessed to having signed an agreement with individuals reporting to be official representatives of the fictional country, and so created official recognition of its existence.
The document in question includes, among other things, recommendations for the government of Paraguay to support the fictional country's inclusion in the United Nations and to establish diplomatic relations with it. Arnaldo presumably did not search for the country on the internet, as doing so would have revealed that while it claims to have a flag, passport, and central bank, it does not possess any geographical territory.
The scandal caused by the revelation of the error was enlarged by the fact that the inventor of the United States of Kailasa is considered a fugitive. The cult leader Nityananda, whose styles himself as a spiritual guru, has been accused in the past of serious sexual offenses and at the moment his whereabouts are unknown.
Representatives of the United States of Kailasa have also petitioned the United Nations for recognition, and been dismissed. The Agriculture Ministry of Paraguay has already announced that it does not see the agreement as officially binding, although it is reasonable to expect the United States of Kailasa to attempt to exploit the agreement for its benefit.
The official X account of the United States of Kailasa has sharply criticized the "disinformation campaign" against it by journalists throughout the world and claims that reviews of the incident are filled with racism and Hinduphobia.