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And yet, we know that at least some did survive and complete their Second Nightmares.
Yes. It's been stated before that Mordret lived with Asterion for a while as a child.
I disagree. Sunny thinks of himself as a selfish person, but his actions contradict that. In chapter 328, Cassie thinks to herself: "Sweet Sunny, who pretended to be callous and cruel, but was actually caring and kind." I think Sunny's life in the Outskirts forced him to act a certain way to survive, and he convinced himself it didn't bother him.
Caster's first appearance was in chapter 20, and he died in chapter 340.
If you don't stay dead, did you really die?
Yup, pretty much all Awakened are traumatized from childhood, and few of them get proper therapy because being traumatized is just normal.
I actually do think Nephis is at least partially a satire of OP webnovel protagonists, as seen from another person's perspective.