What's the deal with matchmaking?

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So yeah, what's the deal? What are the standards for matchmaking?

Today in champ select, a wild Xin appears, insta locks although his position was already called, and proceeds to not speak at all. Eventually he fed horribly, and didn't speak A SINGLE WORD during the whole match, neither responded any pings. He costed us the match, by feeding Vlad and Anivia, which were very hard to stop as they had way more money than us.

After the match is done, we realized that our Xin was lvl 1 with 0 wins, the only lvl 1 with 0 wins in both teams! What's the deal with this? Now I know it's just a normal so no biggie, but it kinda sucks to know you're probably gonna lose because 5 minutes on, your top laner has died 6 times already, has no cs, buys stupid items and does not communicate at all. After all we are supposed to have fun and have a good time with the team, but it's incredible how 1 person can ruin that. Even if he was just bad it would've been ok, but not talking at all and making us change original team comp due to his lack of communication? not cool. Why did we get matched with him? The other team was completely balanced lvl wise.

Well either way, although it was frustrating during the game, I don't really care that we lost, but I really wonder what's with matchmaking, if someone was so kind to explain. Does this happen in ranked also? I know it can't happen lvl wise, but elo wise?