If the ghosts are to be believed, this is Alex's fate for setting her friends free and refusing to give up Clarissa - she is trapped in the loop, forced to relive the game's events for eternity.Alex, at least, doesn't remember the events when they repeat.
This is why they want to possess human bodies to escape. And I Must Scream: The ghosts are trapped, eternally, experiencing their deaths over and over.
was creating nuclear reactors for submarines is ludicrous. The possibility that two years earlier the U.S. Almost every top allied scientist was involved in the bombs development. The bomb was completed in 1945 and used every bit of fissionable material in existence. During the war, the only nuclear project going on in the United States was developing the atomic bomb. The game states the sub was sunk in 1943 while it was testing out its nuclear reactor.