One of the first uses of booby trapped munitions was by the British in the Malaya revolt by Chinese in the 50's.
The SAS began depositing booby trapped ammo, grenades, and mortar rounds.
As the war progressed and the Chinese insurgents got more desperate, the SAS increased the amount of munitions to the point where a high percentage was tampered with.
This so damaged insurgent morale they finally had to give up.
In Vietnam we also used this technique under a number of code names like Italian Red and Bolo Beans.
It started out with reloading rifle ammo with Bullseye powder, then progressed to actual explosives in ammo, mortar rounds, and grenades.
Most of this production was done by Special Forces at a base in Taiwan.
The amount of munitions booby trapped was so high, American forces were warned not to use enemy ammo.
7.63x39 ammo for use by American and South Vietnamese units was manufactured for them.