Points here are:
1) Doesn't seem logical: totalitarianism doesn't seem to be a logical extension of the extreme right-wing version of freedom from government. But the hippies of the sixties were all for love, peace, and freedom and their extension into tyranny doesn't seem logical either.
2) The Nazi thing (and as far as I'm concerned a large part of the Democratic party) is about "extremism." By definition, "extremism" has the element of "fanaticism" that loses track of what it was originally trying to do. It has become unreasonable and, therefore, defies logic.
The extreme extension of conservatism goes through libertarianism and continues on to American Mountain men. The extreme extension for the American right is no state, not a hyper state of any kind.
Your confusion is in looking at the political world as a single line that goes from one extreme to the other. It is not. There are a multitude of paths (monarchist, fascist, tribal, communist, socialist, theological, and a plethora of other utopian schemes) that all end in total state control when taken to their extreme.
Running personal liberty to its extreme does not result in a larger more powerful state, it results in the absence of a state. The only reason that the NAZIs got tagged as being on the “right” is because they were attack Soviet Russia and it served the purposes of the American Left.