Got rejected for a PPO after a successful Internship. Even my manager was shocked at how I got rejected.

So few days back, The company (huge Product based MNC) after a whole month of review , extended their Pre Placement Offers to 2025 Undergraduates in which unfortunately I didn't get. I was part of a Data Operations and Engineering team during my internship and me with another cointern came up with a GenAI solution to prepare a Data Validation Engine for the Data Product Platform which included a Semantic Table Recommendation based on Business Rule and a Natural Language Data Validation Platform with Dashboard to select , drag and drop and see end results. It was a complete Full Stack project for a 3year B.Tech student who straight got thrown into world of Oracle, PySpark, Langchain , NLP , React , FastAPI, and even we mounted the Dashboard as a specific route of API and almost prepared it for pre-production. Now, our manager and other teammates (SDE I and II) said that this is a new team and one of most ambitious long term project and they are in need of personnel and based on what we accomplished in 2 months, they said they definitely wanted to see us back in January to improve the platform and actually push it into Production. Also it's normal for the Company to push 90-100% conversion from Internship to Permanent Job offers from its last 3-4 year track record. But everything changed, when the PPOs dropped in. Colleges were witnessing 30-50% conversion only and the conversions for the students didn't make any sense in any way. Though I was lucky enough to come back to college and get a backup Job Offer but I waited desperately for this PPO since I felt like family in those two months and because of this I gave up my streaks of practice and got deviated from my own projects and everything. Today, I talked with one of my senior SDE from the team and he said that review of our work was impeccable and they were themselves shocked that we didn't get. My other co-intern who is also placed in a backup offer had the same interaction who was himself shocked how could they cancel our PPOs. The manager said , after they submitted the review and requirements, the HR gave no visibility to the managers themselves and hence no consultation from the actual need was taken while extending. For a large organisation venturing deep into AI in daily life projects, extending offers to 31/84 people and that too in Legacy Stack like C# , Java , Frontend was quite abnormal for the students. Though how much I pretend to be not affected by this event but deep down I am broken from inside. I worked da y and night , I even worked from office every day where WFH was still there. Well, though I have this huge MNC internship on my CV , but in reality, I am not in that big of a college that anything I do can beat this company nor I was such consistent code-worm who kept on grinding Leetcode and DSA everyday. Now I am even worse than most in my college.