Either way, we continue walking towards downtown along Ohio Street. I look up at the sky since a plane (it was actually some odd gyrocopter thing) was flying overhead, and I notice that the moon looks a little weird. I can't quite place what seems so odd about it, but then it suddenly dissolves. It doesn't fade away, it doesn't explode, it just falls apart like a tightly compressed cake of powder whose gel-wrap finally dissolved in water, cascading and scattering bits of itself up into space until there's nothing left.
Now obviously, the moon being destroyed comes as a bit of a shock to me, and it dims the night. But we're walking along a street, so there's streetlights, and there were some clouds in the sky, so when I point at where the moon was and yelp, "WHAT HAPPENED TO THE MOON!?", the folks I'm with presume it's just clouds in the way. I carefully point out to them that no, the moon was right next to that branch (from our perspective) a few seconds ago, and since you can see stars in that area, it means that there isn't just a cloud in the way. The moon, somehow, fell apart. And I really can't be sure (in the dream) if the sudden destruction of the moon will make things a bit weird (lack of tides, problems with crabs, etc..) or if it'll lead to the end of all life on Earth in the near future.