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Personally I think its a load of rubbish. All the evidence they use obviously could mean anything at all....my interpretation of it is that Ultimecia did indeed begin time compression obviously and then after she was defeated it sent Squall (and the others too possibly) spiraling into madness and their memories but since she had been defeated time did go back to the way it was supposed to be...it just took a while....hence the whole "life flashing before his eyes bit"(since he was the main character and we are supposed to see the game from his POV generally we only see his madness and not anyone elses.).... I despise the Squall is dead theory and I will never accept it..

excuse the language, but what a bunch of crap,

the way i see it, Ultimecia started time compression and when Squall ended up at the orphanage and Ultimecia passed on her powers to Edea it was a time loop, and Squall's strength and the love the other characters had for him brought him back to his own time, because if you remember what Edea says just before she recieves Ultimecia's powers "A sorceress cannot rest peacefully until she passes on her powers" Ultimecia may have been drawn to where Squall is by her remaining anger and found that Edea was suitable for taking her powers.

with the no wound thing after the parade at the end of disc one, i actually doubt that magic would leave a physical mark, look at the opening sequence when Seifer used fire on Squall, if magic left a physical mark, wouldn't Squall have had burns when he woke up in the infirmary. i think he was severely injured by the magic, but as it 'faded' or disappeared the Galbadians would have used cure to keep him alive so that they could try and get whatever information they wanted out of him, as for the rest of it, don't get me started or i'd be writing all day

Wouldn't it be far more likely that He died in the opening cutscene and the whole game was just his dying dream? In fact that could be said of any cast member.

Zell choked to death on a hot dog. He is then sent to purgatory where his only way out is to help save the world. When he does he is rewarded with more hot dogs and goes to Zell heaven.

Selphie dies coming over from Trabia and has a dying dream of making a bunch of new friends and having an adventure.

And so on.