"SPOOKY ACTION AT A DISTANCE" IS NOT SO SPOOKY
"Spooky action at a distance", as Einstein called it, refers to the experimental fact that particles can have an effect on each other instantly, even when separated by substantial ranges. For example, if two photons are produced together in what is referred to as an entangled state and the angular momentum of one of these is changed, then the angular momentum of the other one will adjust in a corresponding fashion at the same time, no matter how far apart the particles are. This "spooky" behavior has been known for almost a hundred years and still is a source of confusion.
Yet there is an idea in which the result is not spooky, but rather a natural consequence. I'm referring to Quantum Field Theory, which identifies a world made only of fields, with no particles. What we consider a particle is really a part, or quantum, of a field. Quanta are not localized like particles, but are spread out through space. For example, photons are parts of the electromagnetic field and protons are parts of the matter field. These quanta evolve in a deterministic way as per the fundamental field equations and there is a term in these equations that restricts the speed of propagation to the velocity of light.
However the QFT equations don't tell the whole story. There are events that are not described by the field equations-- for example, when a field quantum transitions energy or momentum to another object. This event is non-local in the sense that the change in, or even disappearance of, the quantum occurs instantly, no matter how spread-out the field may be. It can also happen with two entangled quanta-- no matter how much they are separated. In QFT, this is essential if each quanta is to act as a unit, as per the fundamental basis of QFT.
There is a major distinction between quantum collapse in QFT and wave-function collapse in QM. The previous is an actual physical change in the fields while the following is a change in our knowledge. Despite the fact that we don't have a theory to describe quantum collapse, there is nothing irregular about it. To quote from Fields of Color: The theory that escaped Einstein:
In QFT the photon is a spread-out field, and the particle-like behavior occurs because each photon, or quantum of field, is absorbed as a unit ... It is a spread-out field quantum, but when it is taken in by an atom, the entire field vanishes, no matter how spread-out it is, and all its energy is deposited into the atom. There is a big "whoosh" and the quantum is gone, like an elephant vanishing from a magician's theater.
Quantum collapse is not an easy concept to accept-- perhaps more difficult than the concept of a field. Here I have been working hard, trying to persuade you that fields are a real property of space-- indeed, the only truth-- and now I am requesting you to accept that a quantum of field, spread out as it may be, instantly vanishes into a tiny absorbing atom. Yet it is a process that can be envisioned without inconsistency. In fact, if a quantum is an entity that lives and dies as a unit, which is the very meaning of quantized fields, then quantum collapse must occur. A quantum can not divide and put half its energy in one place and half in another; that would violate the basic quantum principle. While QFT does not provide a breakdown for when or why collapse occurs, some day we may have a theory that does. In any case, quantum collapse is necessary and has been confirmed experimentally.
Some physicists, including Einstein, have been troubled by the non-locality of quantum collapse, declaring that it goes against a fundamental postulate of Relativity: that nothing can be sent out faster than the speed of light. Now Einstein's postulate (which we must remember was only a guess) is indeed valid in relation to the evolution and propagation of fields as described by the field equations. However quantum collapse is not described by the field equations, so there is no reason to expect or to insist that it falls in the domain of Einstein's postulate.