It is a lot of torque, and as Grant notes, everything should still spin just fine. I suspect that the wheel bearings were not installed correctly and in the proper order.
The first bearing is pulled/driven down into the hub and seated in the wheel. The second bearing is pulled or driven with a tool that covers the whole bearing and pushes both races equally. If you seat the second bearing with something like a socket that pushes only the outer race, you can seat the outer race too far down into the wheel.
That is: the inner race will stop when it meets the internal spacer, but the outer race can still move farther to contact the hub. That, of course, stresses the bearing in a way it is not designed to handle, and it will fail.
................shu
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