Yes I know, your least-favorite idea goes here. But seriously, someone must have come up with the concept before. Like a bad get-rich-quick scheme could fall into this category, where joining the scheme makes people lose money and become more desperate, so they become more likely to do desperate things like invest more in the scheme. But it can apply to a number of other bad ideas.
Springtime for Hitler. Somewhat fits. It’s an intentional failure that succeeded.
Popular boondoggle is a term we used to use at work. I’ve never herd it used outside that job though.