Sweet dreams are made of this

This, being insight into a crazy's powers of suicide/murder persuasion. Y'know, the yooj. Oscar-winning Akiva Goldsman, whose most acclaimed work includes Lost in Space, wrote and directed this episode of Fringe, and it was fantastic.

We begin with Olivia pushing a lady in front of a subway train. Don't worry, it was just a dream. Orrr was it? It wasn't. I mean, it was, but it also actually happened. Just Olivia wasn't there and it was seen as a suicide. Olivia tells the gang about her dream to kill, and while Walter humours her with questions, Peter, as if he has not been around for the freakshow all season, is convinced it was just a nightmare. As if! Olivia jets off to NYC to investigate. And to kill someone else with her mind! A few looks through a magnifying glass and the gang notices a blondie scarface is common to both dream sequence crime scenes.

Nick Lane is a former mental facility patient who had checked himself out after being visited by a bespectacled man (probably important for later). The gang learns that Nick thought he was being prepared as a soldier for a war, and sees on his wall newspaper clippings about fringy tests on children. Walter shares that when he used to experiment on kids back in the day, the Tryptophan drug (the same drug that enables in them the Brite Lite abilities), allowed travel between realities. Annddd, they would pair kids off so they could have a friend at human-testing camp, and these pairs would sometimes develop very strong bonds. Strong enough to travel between each other's realities? Hmmmm, Walter?

Yes. In fact, that's exactly it. Olivia and Nick were BFFLs once upon a time, which is why she can dream what he is feeling and doing, as if it's her reality. While she got Brite Lite powers, Nick got the ability of being a hyper emoticon - his feelings are contagious to those around him, and since he is a sadface and wants to be an X-for-eyes, the people near him have been killing themselves and others.

To catch a killer, one must BE the killer. Ommm. Olivia goes under some techno-disco-strobe light hypnotism while she dreams Nick's meeting, sexing, and killing of a stripper lady. Everyone enjoyed witnessing this wet dream and all was good with the world again! They found Nick atop a building, but instead of killing him like he politely asked, they took him back to the CIA and put him in a coma, probably for more tests.

So now it's confirmed that Olivia was one of the ZFT mascara bunnies and Walter a ZFT researcher. And Peter a skeptic, still. Come now, Joshy, just take off your pants and believe!