Ok! One of the others is probably better suited to tell you all this, but here goes.
So Sandman (Scarlet’s character) came to chat with the other characters in group 2. He’s the one who’s controlling these dreams, just for fun. And He is basically going to kill everyone or make them live their worst nightmares unless they can find him. So after talking to them about this, he transported them to a bridge between like a garden and a blue (I think?) city. So right now our characters are introducing themselves and trying to decide what to do… And.. I think that’s it?