Basically, Musk got the rules changed so his overvalued private company, can go public and get added to index funds. Usually in situations like this, the company has to wait 1 year on the exchange before being added to indexes, so its stabilized before index funds buy it.
Since Musk got the rules changed, its the largest public stock offering that immediately went to index funds, because the index funds are required by law to buy the largest companies.
Most people's 401(k)s are tied to index funds. So this massively over valued company got paid $1.8T, which it can pay its private investors out with. Now the public is holding the bag in the form of retirement funds. When SpaceX collapses, so does everyone's retirement accounts.