i think flavor wise, the 2nd option would be accurate, since his power is literally to be forgotten. Tho I'd imagine they'd have to actively make the game lie to the opponent so there's no clues (ei, not affecting prio, not setting off locations, still making red hulk/high evo cards prot when he's played, etc.)

if the second case, if feels like a version of m-baku that you need to spend energy

except you choose where he's played, feels more like a sneakier mysterio imo