Some of you probably already knew this, but today I learned the reason for SVB and Signature Bank's failures was because they refused to participate in reciprocal deposit networks to ensure deposits in excess of $250k were FDIC insured.

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Wait, if I understand english correctly, it means if some deposits more that $250k into their accounts, it's not insured??. 
Why is that "normal". I would think there are regulations that ensure money in commercial banks are always insured ( I assume I'm missing something here )

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The federal government only insures up to $250k per customer per bank. The expectation is that if you have excess of that, you need to distribute it across multiple banks. There are services that let banks do this for their customers seamlessly though. So the customer deposits $10 million and it gets distributed to 39 other banks and each part is insured. The customer always just sees their balance as if it’s all at the original bank