SO MUCH WEIRD STUFF happened in Days, man. I had to watch the cutscene you mentioned first a couple of times and read the journal entries to understand what was going on.

IA DAVID GALLAGHER IS GREAT and Riku needs to get some more self esteem :( He is a fantastic boy and I feel really bad when he is just so SELFLESS and all DEPRESSING. Chin up, man. Go back to Destiny Islands and make funny faces at everyone :(