Forgot to add above the lunar boss in the jacket movie told to our face this.

"We're all dead, Jack."

Earlier was said this

"There was war, and I felt alive.
But, really, I was dead."

Identical intel we have in hunger games where one guy at the end realized he was already dead and didnt care about winning anymore.

But seeing how the lunar scum and chinese are so heavily invested into this world "dead/ghosts in the real world" is what makes most sense to me right now.

Similar to the walking dead, sleepwalkers. dead inside etc is our situation.