Quite a common thing in networks that for some reason has a lot of static routes and is easy to replicate:
R1(config)#ip route 200.200.200.200 255.255.255.255 12.12.12.2
R1#traceroute 200.200.200.200
1 12.12.12.2 4 msec 4 msec 8 msec
2 12.12.12.2 !H * !H
Now the trick is to make the unreachable message go away. On R2: no ip unreachables