Adlerdriver

Yes, I cannibalized an old pair of in-line skates and replaced my wheels on several bags. Unless something changed, the axle goes through the outside of the wheel well, through the wheel and then into a threaded hole on the opposite side of the wheel well.

It sounds like it's stripped. Hopefully it's the bolt (axle) and not the threaded hole. Either way you're going to need to get the axle out. Take the good wheel on the other side off to see what you're dealing with. You'll probably need to get a screwdriver under the head of the bolt to pry it and get some outward pressure on it while you turn it. Hopefully you can get some of the threads that are left to engage and back it out. Spinning it in place isn't helping the situation.

Once it's out, you may be able to tell whether it's the axle or hole just by looking. There's a good chance both are damaged depending on how much spinning you did. You'll probably want to see if the axle from the other side threads in normally to confirm. If it goes in normally, then you should just need a new bolt. If the hole's stripped you'll probably need to send it in to LW to get that part of the frame replaced or tapped and re-threaded (if that's possible).

There are parts available on line or I'm sure you can just call LW and they'll send you what you need. You may be able to discuss repair options based on what you find when you get the axle off.