Mate my heart goes out to you with this, what a difficult situation to be in.

It is gnarly to hear that you feel real pain in your dreams, I have not heard of that before.

A good friend of mine suffers with insomnia and just one night like the kind that you described where your mind starts playing tricks can mess up a whole week for him. Which makes him miss appointments and stuff (he runs a business) and makes him feel worse. It really has been the most difficult thing to deal with in his life. If he CAN get to sleep, he will sleep for a looong time, but generally he can’t turn his brain off and so he just works all night to stay busy.

I hope you ended up having a decent sleep bro,
and I hope in some way that your situation improves soon man!