It may not have been blown up but to even seriously think of such a hair-brained scheme as detonating a nuclear bomb on the moon for no good reason makes you wonder at some peoples intelligence.
Remember, this was the era of Sputnik, which some people used to suggest that the USSR would be capable of hitting anywhere in the USA with a nuke, possibly by using fractional-orbital bombardment. They were seriously concerned at one point that the Soviets might start conducting tests on the Moon, which led to quite a few radio telescopes looking for gamma ray emissions. They found them all right, but not from the Moon, they were natural gamma ray bursts from supernovae.
What the point of making an extra crater or two would be is still unknown. It would be a bit hard to observe the effects, unlike a high-altitude test such as Starfish Prime. I imagine the radio astronomers were a bit reluctant to participate at first, until they started finding something interesting.