Yes and no. Nothing that we know about the universe preclude it being a simulation, so learning only that it is a simulation is more expanding out fundamental understanding of the universe. However, as things stand, we are pretty damn convinced that nothing violates causality while following the internal rules of the universe, so if the genie did that without invoking some power we might call “outside the universe”, then we learn that the universe can internally violate causality - THAT might destroy our fundamental understanding of the universe.
And you don’t call discovering that the universe is a simulation “destroying our fundamental understanding of the universe”?
Yes and no. Nothing that we know about the universe preclude it being a simulation, so learning only that it is a simulation is more expanding out fundamental understanding of the universe. However, as things stand, we are pretty damn convinced that nothing violates causality while following the internal rules of the universe, so if the genie did that without invoking some power we might call “outside the universe”, then we learn that the universe can internally violate causality - THAT might destroy our fundamental understanding of the universe.