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We report the discovery of a remarkable concentration of massive galaxies with extended X-ray emission at $z_{spec} = 2.506$, which contains 11 massive ($M_{*} \gtrsim 10^{11} M_{\odot}$) galaxies in the central 80kpc region (11.6$\sigma$ overdensity). We have spectroscopically confirmed 17 member galaxies with 11 from CO and the remaining ones from $H\alpha$. The X-ray luminosity, stellar mass content and velocity dispersion all point to a collapsed, cluster-sized dark matter halo with mass $M_{200c} = 10^{13.9\pm0.2} M_{\odot}$, making it the most distant X-ray-detected cluster known to date. Unlike other clusters discovered so far, this structure is dominated by star-forming galaxies (SFGs) in the core with only 2 out of the 11 massive galaxies classified as quiescent. The star formation rate (SFR) in the 80kpc core reaches $\sim$3400 $M_{\odot}$ yr$^{-1}$ with a gas depletion time of $\sim 200$ Myr, suggesting that we caught this cluster in rapid build-up of a dense core. The high SFR is driven by both a high abundance of SFGs and a higher starburst fraction ($\sim25\%$, compared to 3\%-5\% in the field). The presence of both a collapsed, cluster-sized halo and a predominant population of massive SFGs suggests that this structure could represent an important transition phase between protoclusters and mature clusters. It provides evidence that the main phase of massive galaxy passivization will take place after galaxies accrete onto the cluster, providing new insights into massive cluster formation at early epochs. The large integrated stellar mass at such high redshift challenges our understanding of massive cluster formation., Comment: matched to the published version by ApJ