Q:

Has "the destruction of the space shuttle Challenger... been linked to insufficient sleep"?

According to Daylight Savings Time and Traffic Accidents N Engl J Med 1996; 334:924-925

Major disasters, including the nuclear accident at Chernobyl, the Exxon Valdez oil spill, and the destruction of the space shuttle Challenger, have been linked to insufficient sleep, disrupted circadian rhythms, or both on the part of involved supervisors and staff.

Is this really true?

A:

On the headline question

Has “the destruction of the space shuttle Challenger… been linked to insufficient sleep”

There probably was a link, as it was important enough included in the Rogers report. As was reported by NASA:

The Rogers Commission Human Factors Findings stated, "The willingness of NASA employees in general to work excessive hours, while admirable, raises serious questions when it jeopardizes job performance, particularly when critical management decisions are at stake."
source: NASA: To sleep or not to sleep

The cause of the accident itself is well known and was, put simply, a failure in the joint between the two lower segments of the right Solid Rocket Motor. 
The relevant part of the Rogers Report for this question is human factor analysis which states:

Other studies have demonstrated that night work and shift changes produce sleep loss and fatigue by disrupting workers' Circadian rhythms.

For which that line cites:

Akerstedt, T., "Adjustment of Physiological Circadian Rhythms and the Sleep-Wake Cycle to Shiftwork." In S. Folkard and T.H. Monk (Eds.), Hours of Work, New York: Wiley, 1985, pages 185-197.

The report goes on

One group of such workers are the Morton Thiokol employees who typically work 12-hour shifts, either 3:00 p.m. to 3:00 a.m. or 3:00 a.m. to 3:00 p.m., from two to seven days (mean = 4.5 days) in a row while performing the stacking of the Solid Rocket Boosters. Both these extended work schedules disrupt normal sleep patterns by starting or ending at about the usual midpoint of night sleep, thereby producing substantial sleep loss. The occurrence of lengthened workdays of 12 to 16 hours in the preceding four case histories would also disrupt sleep by interrupting the worker's adjustment to his current shift schedule.

