What makes you think that the Kochs have “a bizarre anti-Ludwig von Mises bias.” They’ve funded Misesian economic research (especially at GMU) for decades. It’s certainly true that they have a very bitter conflict with the Ludwig von Mises Institute. But not because of some mysterious beef they have with Ludwig von Mises (who was by then several years dead).

Rather, what happened is that, the year before the VMI was founded, the Kochs and Ed Crane had an extremely bitter conflict with Rothbard, who until then had been a founding member of the Cato Institute, and the main person writing their position papers. Rothbard was fired from Cato in 1981. Rothbard certainly did not “leave” Cato in order to “stick with Lew”; he was thrown out of Cato against his will (he maintained illegally — he had “shares” in Cato that the Kochs simply confiscated — but decided not to fight it in court), and Lew set up the VMI in 1982, after Rothbard was gone from Cato, largely in order to provide a new harbor for Murray and his ideas. The Kochs got pissed off about it because they were pissed off at Rothbard, and because the Institute was founded as a direct challenge to Cato’s approach to libertarian advocacy. Not, particularly, because the Institute was named after Ludwig von Mises.

You can read all about the whole sorry story in Brian Doherty’s Radicals for Capitalism (Chapter 7-8), or (for Rothbard’s side of the story specifically), in Rothbard’s “It Usually Ends With Ed Crane.”