Oh you mean its like a flashback of what happened, then he wakes up?

Maybe, I guess. . . but either way the actual fight happened right before Squall ended up in the infirmary - Dr. K says that he had a head injury that would leave a scar when he wakes up, and Quistis admonishes Seifer to be more careful when fighting fellow students. You could argue the FMV itself is Squall's recollection of the fight, but that doesn't change the timeline of when the real fight took place.