I find solidarity with Michigan fans at least in one way - this "WTF is happening" feeling was something I felt strongly last year against Iowa. Like, really, how is this happening?
Anyways, obviously the pass protection was absolutely spot on for the Bucks, which was probably the key to the game. But also, Haskins seemed to repeatedly check into good looks, something he had a hard time doing earlier in the season (ahem, Penn State). Being at home really helped here, because the line and Haskins seemed to have no communication problems at all. A Haskins who can survey the field and get protection can carve up any defense, and carve up he did.
Defensively, it wasn't like they were great, but they made Michigan earn everything. There were no huge busted coverages or gaps that led to long plays, and by making Michigan earn things they were able to make enough stuffs and sacks to get off the field.
For Michigan's part, the defense never really had a chance. Unable to get pressure with their line, the linebackers were stuck. If they blitzed, the middle of the field was open, and if they dropped back in coverage, Haskins had time to find an open guy. Offensively, I am surprised they didn't try and pick on OSU's corners more. OSU's corners aren't great, the refs were flagging every breathe by both teams' DB's, and Michigan's receivers are big and fast and can catch. Regardless, they wanted to run the ball and play defense like they always do, but the running wasn't quite good enough and the defense was way not good enough. Like in the Notre Dame game, when they needed that extra gear, they didn't have it.