Board Thread:General Discussion/@comment-5679696-20161205034133/@comment-5679696-20161205230056

I think that Adam and Eddy explicitly saying "it’s not an alternate realm in the sense that it’s just imaginary and not real; this place actually now exists and is real" is enough information to say it is just as real.

And yes, the history did happen. The world with all of its history was created when the Queen made that wish. All of it is real, and all of it exists. At least that's the way I understand Adam and Eddy's words, and the episode itself.