u/BravoFox_

Its all a Simulation created by Jade's Quantum Company.

The Simulation is used in Psychiatric clinics to treat/cure anything from Schizophrenia to PTSD.

The Simulation bugged, causing every patients simulation to merge into a single nightmare scenario. Victor's simulation being the worst situation.

Jade can't shut down the program, because like the Matrix, thier minds may be stuck. -- The software wipes your short term memory, so you don't realize you're in a Simulation. - Jade went into the "Game" to guide people out.

The source of the bugs is located in the F-ROM of the computer, this memory can't be updated or changed unless the memory is not in use.

F-ROM stands for Flash Read-Only Memory. It is a specific type of non-volatile computer storage that blends the data permanence of a traditional ROM chip with the electrical rewritability of Flash memory.

How F-ROM Works -Traditional ROM chips are permanently hardcoded during manufacturing and can never be changed. In contrast, F-ROM uses EEPROM technology (Electrically Erasable Programmable Read-Only Memory) organized into larger blocks. This allows the entire chip—or massive blocks of data—to be erased and rewritten electronically.

This is original theory of mine. A lot of Tinfoil and far stretches. But based on quite a bit of evidence as well. -- If you're into that kinda thing while we wait for next season, give it a read and tell me what you think.

I had a theory that the Children aren't children at all. -- They are magical beings, "Star Children" with "Star Magic".

"Born in the Dark, Died in the Dark" -- Just like a Star.

It is very possible that the original children are "The Secret Faeries." - Star Children with magical powers to manifest both Dream and Nightmare through thier Dreams. - That may have been found in or around the lake at the Settlement.

"When You Wish Upon a Star, your Dreams Come True"

The children are nearly identical to the Adult Nightmare Monsters. Nearly bald, dark veins, ash white skin, long sharp fingernails. -- Possibly the reason they were kept in cages Underground. The people feared their power and they way they looked.

Wouldn't be surprised if the the Nightmare Monsters are the manifested nightmares of the original caretakers (Parents) who died. They feared that the children would grow up to be a monster who comes out of the caves at night to slaughter the village.

Tabitha/Jade original incarnation were the only two people to treated them as children. They brought them gifts, toys, played games, and played music for them to help them sleep.

But the other caretakers (Parents) were promised a deal by a false prophet, that if they sacrificed the abominations that they would be granted "Everlasting Life" from God. (Live Forever)

The False Prophet, the Man in Yellow, the Devil, would then use their bodies/blood to fuel his Dark Magic. - I believe part of the Ritual is to leave no memory, witnesses, or knowledge that it ever happened.

"The loveliest trick of the Devil is to convince you that he doesn't exist." - The Generous Gambler 1864

There was a witness, the Boy in White. He was real child of Tabitha/Jade. Their adoptive daughter being one of the Star Children.

Jade and Tabitha promised all children that they would protect them and one day would free them from thier prison.

The parents learn of Tabitha/Jade scheme to free the "abominations" and accused them of being in league with the Devil. The town murders Jade as he tries to defend Tabitha. She is then captured, then Burned Alive for being a Witch.

Their Son, BiW, told the children a story before the thier sacrifice that if they had Faith/Hope that they would be rescued and not forgotten. -- So the children Dreamed and poured thier hope into the Tree which formed a "Dreamcatcher" around the Forest, preventing any Soul, Nightmare, or Monster from escaping. Forming a Physical and Spiritual Prison around the Forest. Except for Jade/Tabitha, so one day they could return and rescue the children. Thier souls, able to pass through the heart of the Dreamcatcher to be reborn. The Bottle Tree.

They must Remember thier Promise - The bones must be returned to the lake were they were found by the original people. - From there they will be reborn. They will awaken from thier slumber in the void. -- Thier Dream releasing its grip on reality.

Promise Fulfilled - Curse Broken - Souls Freed

I'd like to believe that the game/story ends and resets as if it was never told and nothing happened. It all just becomes a collective memory in the end. - Everyone comes back to life or returns back to thier appropriate time period at the exact moment they entered the Dreamland. Bearing the scars of thier journey, depicting that they were really there. -- Similar to the original Jumanji.

"Monsters aren't real, which means Norman is alive"