The interplay of spin-orbit coupling with other relevant parameters gives rise to the rich phase competition in complex ruthenates featuring octahedrally coordinated Ru4+. While locally, spin-orbit coupling stabilizes a nonmagnetic Jeff = 0 state, intersite interactions resolve one of two distinct phases at low temperatures: an excitonic magnet stabilized by the magnetic exchange of upper-lying Jeff = 1 states or Ru2 molecular orbital dimers driven by direct orbital overlap. Pyrochlore ruthenates A2Ru2O7 (A = rare earth, Y) are candidate excitonic magnets with geometrical frustration. We synthesized In2Ru2O7 with covalent In─O bonds. This pyrochlore ruthenate hosts a local Jeff = 0 state at high temperatures; however, at low temperatures, it forms a unique nonmagnetic ground state with nearly linear Ru─O─Ru molecules, in stark contrast to other A2Ru2O7 compounds. The disproportionation of covalent In─O bonds drives Ru2O molecule formation, quenching not only the local spin-orbit singlet but also geometrical frustration.