I’ve always suspected the “index funds are the safest investment” system is ripe for exploitation.
It was much safer before the indexes decided to throw off all the safety hurdles designed to make sure stocks were relatively healthy and the price was reasonably well settled before they were included. And the core idea that a random investor probably can't reliably pick stocks that will out perform the broad indexes is probably going to remain true, even at the high evaluation SpaceX is a relatively small piece of the total index, it's just disasterous for public trust to see the safe guards thrown down like this imo.
if you're invested in a broadly diversified index you can be annoyed by this thing, but it won't impact you a lot.
E.g. if you owned something based on MSCI ACWI, which is free float weighted and global, SpaceX will end up being less than 1% of your portfolio even at a trillion dollar valuation.
It's just NASDAQ which is complicit in this scam by overweighting SpaceX.