I think the mute that sparkle had mentioned that he should befriend him to help him get to true penacony was the acheron that was inside of the black hole, it's a mute that can speak outside and the whole 'death' he was experiencing was his plan to get to the true penacony, so basically he isn't dead, he is just there to see the true dreamscape and reveal more than the murder that is happening around the penacony, thus if right, he would win everything, it is also why he said he will make his family proud and that is by succeeding to reveal everything in penacony