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The CA HS sports governing body made a special rule that allowed a transgender athlete to compete but if the transgender athlete placed, the competitor just behind her shares that place. So when the transgender athlete placed second in an event, the otherwise third place finisher was also deemed in second place and the fourth place finisher moved up to third. When the transgender there finished first in two events, the second place finisher also finished first and everyone else moved up a spot.
This is track and field, not a contact sport. And any alleged concern about girls somehow losing out was resolved — the placement of the transgender athlete didn’t take anything from the other competitors.
But Trump (who has zero authority over this event and its rules) is threatening huge fines (because I am sure girl’s HS track is for profit and swimming in cash) because the transgender student was allowed to participate under hastily changed rules implemented shortly before the meet that didn’t cost any other competitor a place on the podium due to the transgender athlete’s results.