Those red and green flashing lights They put the father into a hypnagogic state.

"who can induce paralysis, cataplexy, hypnagogic hallucination, and the temporary illusion of death."

It could be a dream that he experienced During a hypnagogic state. That would make it true for him,

Now I posit that the flashing lights witnessed by the father induced a-a hypnagogic trance during which stage the child was abducted.