Do you remember the coma theory? Well in the trailer, there's evidence that supports the theory

So in the trailer, exactly at 0:23

Toh s3 ep3 Trailer

Amity: “You have to wake up.”
Luz: “How?”
Amity: “You turn on the light.”

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(In my opinion) It’s not that she’s in a coma, but that the collector slept her and she’s dreaming

In fact, this video explains it.

(although it is in Spanish)

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No creo. Lo veo mas como un recuerdo de ellos en las Islas Hirvientes.

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No se la verdad, tenemos poca información de lo que podría pasar en el tercer especial.
Lo que siquiera analizar todo mas a fondo lo malo es que aveces no tengo tiempo para aquella por las clases y eso aaaa.

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That explains why the episode’s title is Watching and Dreaming

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Completely disagree lol, not trying to be rude but im pretty sure the collector is the one putting ALL of them in dreams or like “nightmares” And when i say everyone i mean the hexside squad along with like eda and king. The coma theory is kinda flawed imo (sorry if im coming off rude here)

There actually isn’t, it’s very clear that it’s just Luz’ worst nightmare.