did it actually happen or it was another one of hurley's imagination ????? LOL !!!!!!

I don't understand how idiot were jack and locke to have believed him when he said all those things about the others as though he noticed them that closely for so long and the others weren't able to notice him...... so stupid of the others or so clever of micheal neither of which has ever happend as we all know about 'the others' -
"They are smart and They are animals" - Late Ana Lucia
also we all have seen micheal do all the stupid things right from the begining.

So this theory suggests that micheal is now one of the 'others' .So he killed two fellow survivors and then shoots himself and lets henry free to make an excuse to the group that henry shot him and escaped and then he will work for the others while living with this group.

Also don't forget locke seemed interested in the invitation to join others when Henry told him the story. So maybe he turns hostile next.


On the contrary

It does not makes sense 'cause what would the others have done to Micheal to make him forget the hatred he has for them due to capture of walt. Micheal is still a good man and he killed Ana just because the others decided her death (a ravenge as she killed Goodwin) to be a trade for walt. Because while killing her he had a soory feeling in his eyes also he didn't mean to kill libby she accidently came in between.