I'm a casual chess enjoyer and I like watching events that Maurice Ashley hosts, so I tuned into the Sinquefield cup last year to see if he was announcing it. I ended up watching/following the whole tournament. Here's my summary of what ACTUALLY happened as best as I remember:
The Sinquefield cup is an annual invite-only chess tournament for the strongest chess players. One player, Richard Rapport withdrew from the tournament and was replaced by a 19 year old grandmaster named Hans Niemann.
When Hans ended up playing Magnus (the world champion), he defeated him with the black pieces. Black is considered to have a disadvantage because white goes first, so just getting a draw as black is okay, and a win is great. Magnus hadn't lost as white in quite some time (hes the strongest player in the world so it makes sense), so this made the win particularly surprising.
Magnus withdrew from the tournament without saying anything which set the chess world ablaze. Everyone assumed it was because Magnus felt Hans cheated (which Magnus later confirmed). The streamers jumped on this controversey for the views, and during one of the popular streamer's broadcast, a random viewer said he probably used anal beads to cheat.
Thats it. Thats how the anal beads story came about. He wasn't even cheating in the end. Magnus played poorly. All the best players in the world say so, and Hans didn't play particularly amazing (he just capitalized on the opportunity). All the articles, all the press coverage, Elon Musk mentioning it, all stems from one random person on the internet making a cac joke.