DNS Spoofing is considered...bad. But that's only because people do not use it for good.

I am trying to block a directory of a website by spoofing it on my local DNS server. However, I do not want it to redirect. Here is an example of what I have done so far. The website shall remain unnamed for privacy.

http {
    server {
        listen       80;
        server_name  example.com;

        location / {
            proxy_pass http://example.com/;
            proxy_set_header host $http_host;
            resolver 8.8.8.8;
        }

        location = /blocked/blocked.json
        root /dns/;
        autoindex on;
    }
}

The directory of the website that I want to block (examp;e.com/iwantthisblocked) passes through the DNS and pulls up what it would without a DNS at all, however, the main directory of the website (example.com) throws a 500 internal server error.

This is running on an Ubuntu server with DNSMasq (DNS is set up properly).