Quote Originally Posted by Ozmoid View Post
As you may have noticed, Cloud DID see nibel heim get destroyed, and it WAS destoryed. Bearing this in mind, why don't the inhabitants of nibel heim rember it?
Nibelheim was rebuilt as a home for the clones. The people there are actors hired by Hojo. If you read the note on Tifa's desk, it pretty much explains it.