There's nobody that visibly has the LCNostra tag so I can't be sure, but that's the logical explanation given the results...

When I create the tag LCNostra on the alliance server I get the message "You have created the tag 'LCNostra'", but it does not place my country in that tag and the tag info I used to create it does not work. Additionally, it allows me to "create" the LCNostra tag over and over again with the same result.

I tried again using a different tag, and it worked just fine. I am assuming that someone ganked the LCNostra tag and then left it and that the game is not giving the message when creating a tag informing the user that a specific tag is already in use.

nvm*

I have reproduced this bug by creating a tag, dropping it and then recreating it. Sounds like someone took it and dropped it.

This should be fixed now, thank you.

Edit: your assumption was correct about the tag being "stolen".

what exactly could have been fixed then?

Proper error messages are shown.

We're working on a way to mitigate the "tag stealing" issue.