The world was under Mugen Tsukyomi all the time.

[Cray]

Kagya casted Tsukyomi on the world and it never ended. The world is just illusion.

Constant close-up of the moon proves that.
Madara's goal to kill Kagya and free everyone from genjutsu.

Don't be fooled by Kishi.

 

[Zealotic]

That would be hilarious if it was true

 

[Bling Kai]

This aint the matrix it does not work like that.

 

[Dãrth1]

This ain't matrix