Please clear this up for me. (SPOILERS)
I was recently replaying FF7 and there one thing that always stumps me. Now, I do understand the whole Jenove/Sephiroth/Cloud/Zack thing, so it's not directly relating to that. (SPOILER)In the flashback scene where Cloud thinks he's Zack, Sephiroth snapps and burns down Nibelhelm. Yet, when Cloud and Co. come back to Nibelhelm in Disc 1, the townspeople deny the town ever being set ablaze. So, my question is, since what happened with Sephiroth coming to Jenova in that mako reactor at Mt. Nibel actually did happen, why wasn't Nibelhelm affected at all in reality. I mean, Sephiroth (according to Cloud's inaccurate flashback) was going to his "mother" in the reactor right after burning down that village. Yet, later in Disc 1, the town is untouched. The townspeople should remember something.
Why is that?? I'm really curious here.
EDIT: Horrible typos. *fixes*