The Unidentified Flying Object that crashed in New Mexico was later revealed as a surveillance balloon. The original purpose of the balloon was monitor Russia's Nuclear Weapons tests. Our relationship with Russia was very flaky at the time, so the government claimed that this balloon was a weather balloon.
At the time, paranoia was the norm, and when people asked why the government was so strictly securing the area of the crash the government pretty much said, "cuz we can". This led to a massive craze that an alien craft had crashed in Roswell and that the government had covered it up. This was exacerbated by the locals who noticed that tourism had gone way up and started fabricating evidence to further "prove" that the surveillance balloon was actually an alien craft. It was even FURTHER exacerbated by our government, who flat out refused to provide any proof on the matter until the 1990's.
In reality, we simply didn't want to admit that we were spying on Russia.
Because it was a rebel.
Ah, fun. Anyways, the quasar that you're talking about (the one that is so big it shouldn't exist) exists probably because of our oversimplification of our mathematical description of the universe. We just need to correct it and move on, really.
Whenever something breaks the laws of physics, all it is doing is proving us incorrect. All we have to do is rewrite the law until it is correct and see how well it holds up in the future.