They don't really tell us how this all happened, all we see is Danny's dream, but we don't know its a dream until he wakes up, but because of what has happened, we can assume Danny lost a battle with a new enemy, who had to ability to put everyone to sleep.
Here is what I'm saying happened.... This ghost, named Nocturne comes to Amity park and sets his sleepwalkers around town placing dream helmets on everyone and they all fall into a deep wonderful dream sleep. Danny and the rest of the gang are somewhere, trying to fight it.
Danny wonders where I am, and Jack, Elsa, and her friends and Onyx we were all with Britney and the cheer squad, at some ice cream place not too far from where this was all taking place. The 4 of us look up at the T.V. and I tap at Jack, and Onyx. Guys, we gotta go!
Where are you off too Jade? My brother texted me, he's worried about us, because of what's going on, on T.V. Elsa are you coming with us? This is a cheer meet, none of you should be going anywhere. But I understand, your brother is worried about you, sometimes I wish my twin would worry about me. Oh no trust me Brit be grateful he doesn't. He all but smothers me, because of my dad.
Jack we really need to go! I said tugging his arm. Elsa, Onyx, I need to talk with you all for a sec, about what Danny wants with me, its a "loser" club meeting. I didn't really need to talk to them, we went to a corner, they shielded me, I transformed into Faith, grabbed Jack's hand and phased us through.
We took to the skies. I can uh fly on my own, you can let go now. Huh? Oh s-sorry. Look Danny there they are! Tucker and Sam point up at us. Look they're ok! Jazz calls to us. While Danny is in ghost form. Faith Jack, watch out! They all call to us. But its too late, sometime between the secs we got there and after the sleepwalkers put a helmet on our heads, and kidnap us both.
While they all call out to us, more sleepwalkers come and put helmets on our friends and carry them all back to their respected homes, and now where the rest of the citizens now stand they sleep, we have all lost, this new enemy thinks he's won, but I knew my brother would come through and defeat thing, but until then all of Amity park would be having endless sweet dreams, kind of like if Pitch was evil again, but instead of cursing us with bad dreams, we were cursed with good dreams so that no one would ever want to wake up vs never wanting to go back to sleep, but we might end up needing Pitch's help again defeating this enemy.
For now, Nocturne slept peacefully as well, while he held Jack and I captive in a stronger version of the helmet then he would anyone else, not thinking anyone would ever have a way to break free of his trap. Except for now we were all in blissful sleep. Who knew all you needed in order to defeat the great Danny and Faith Phantom was some form of awesome dream machine.
Sleep now everyone, dream land is calling all of our names. Good night, goodnight, look at that I'm already asleep, sweet dreams to all and to all a good zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz