Conservative vote margin was 1.8% over the liberals, so, not ridiculous. They got 119 seats compared to 158 liberal.
When you have more than 2 parties a result like that isn’t so surprising.
The local Quebec party got 7.7% of national vote, but all in one province so get 34 seats. The far left party got 17.7% of the vote, but only 25 seats because their votes were more spread out (the Canadian system is first past the post).
If Canada was a two party system the combined left wing vote is higher than right wing, so the result is about right, the liberals can pass any left leaning legislation they want by getting the NDP to vote for it.
As others have pointed out, it’s more due to the multiple parties vying for individual seats, and the popularity of the parties varies significantly by region.
For all the talk about the NDP and Liberals being interchangeable left-leaning parties, the Liberals are basically unelectable in Alberta (conservative, oil-country), with the NDP typically being the runner-ups.
The system is not ideal (personally would prefer a proportional system), but fortunately Canadian electoral districts are determined by a non-partisan government agency, so gerrymandering isn’t a big concern like in the US. In 2011 the Conservatives won more than 50% of seats in parliament (allowing them unilateral bill-passing power) with only 40% of the popular vote, so it can cut the other way as well.