It seems to me like this is what happens when you do impulsive, hype-driven development. I assume a junior walked into Elon's office, and pitched it with the words "Bitcoin style encryption, as a chat platform--Written in Rust, almost entirely developed my Grok3", and he was sold.
I'm not being cynical or funny, I legitimately think, after having worked with some hype-driven leadership people, that this is quite common and results in a lot of flawed slop products, which are hyped up by leaders who don't know what they're talking about.
Admitting that this sort of product doesn't do what they think it does would mean admitting that they are wholly incompetent and got tricked by the hype; and that's not acceptable. So it get sunk-cost-fallacied into being a real product even more.