[standardUser]

Most people would not consider it 'smart' for a sovereign nation to voluntarily give up territory. Maybe they could have responded less aggressively, but if you're waiting around for governments to start giving away land, keep waiting.

[acadapter]

It's not a situation where someone is "giving up land". Croatia doesn't claim the land from its own legal perspective. The Croatian ambition is to use a historical path of the Danube river (from something like ~150 years ago) as the border. This way, Croatia could control larger pieces of land which today belong to Serbia. The line of control, after the war, is the modern-day river, which follows Serbia's claim.

However, despite Croatia's claims, there's also been some gray-area Croatian forestry going on there, through Hrvatske Šume. And since the Liberland movement started to claim the parcel as "no man's land", Croatia started patrolling it with police and arresting people occasionally.