The Supreme Court Resuscitates the Eighth Amendment

This should have an impact across the states. It was my understanding that the US Constitution and Bill of Rights trumped state laws. How we got to the point where states would make laws that trump the federal level beats me. I always thought the Rule of Law meant:

US Constitution/Bill of Rights ==> Federal Law ==> State Law ==> County/City/Local Law.

But then I read this: "The court claimed that the U.S. Supreme Court had not specifically “incorporated” the excessive-fines clause to Indiana, so it was not “enforceable against the states.”"

Huh?!

Is this a way that States bypass those parts of law that they don't like? Like the whole "...shall not be infringed..." part of the 2nd Amendment? How is a layman supposed to understand all of this when lawyers put it under so many layers of "settled" law, extremely obfuscated language and a whole dance of double speak?