Any further thoughts on this

What does it mean that, Mahaveera just by knowing himself, got to knew the whole Universe?
Does it mean that illusion is so big that, we somehow try to associate ourself with everything in the Universe, and in the process of separating our self from Universe, got to know, who am I and what others are…Am I thinking right??

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Yes you are thinking right.
When a being realizes that he is not the body but the soul. He is as pure as Siddh Bhagwaan, he meditates and destroys all the 4 Ghatiya Karmas and become omniscience (keval gyani). After getting Keval Gyan, he knows anant prayayas of every jeev as well as padarths.