This theory was prevalent back then for Final Fantasy VIII fans. The theory goes that Squall died at the end of Disc 1 when he faced Edea on a parade float in Deling City. After seemingly beating Edea, she conjured an ice shard that pierced Squall's chest. According to the theory, the following sequences from Disc 2 until the second half of the movie's ending are just a dream. In 2017, Kitase directly mentioned that this is not true. The ice that seemingly "killed" Squall only pierced his shoulders. However, Kitase did note that it is an exciting theory, and he'll keep that in mind if ever the time comes for a Final Fantasy VIII remake.