I saw dinosaur looking creatures flying and moving around under me. I was flying in the sky above and I had made it up there after making myself fly off of the ground at a certain point. There was a cave as I remember it, I had to escape a big cave and somehow I knew how to escape and how to get out. There were so many doors going nowhere where I could figure any real direction out now. I feel that in my dream I had some sort of supernatural powers and one of them was sensing my surroundings and knowing which way to go. The dream I remember began with a fight in a house which was put under water by a tsunami that I caused with my mind powers. After that the people of this house that I was in attacked me all at once and I escaped out a sliding door to a deck outside which was level with water before I caused the water to rise. I felt that they were fighting me because of me causing the waters to rise above their home.
The dreams went on and there was a time when I was running and fighting at the same time, just swimming up and trying to rise out of the high end of the waters. It took a while getting up but I eventually got up and there was a man that was there who came up just after me. I fought him off and as he came up there were bugs all over him sucking on his skin and sticking like leech creatures, but different and green. I managed to not get these creatures on me at all. There was a thought in my mind as if I was using a supernatural ability to not believe the bugs into not harming me. Instead of believing in them being all over me in which case it could have been the opposite. If they had touched my skin then they only fell right off.
Then that’s when I maneuvered up some rocks up onto a rock platform with a cave there on top of where I was trying to get to above the water’s edge. I went in that cave and then had to escape after finding myself being chased and in a life threatening situation.
This was when the rest unfolded, I flew out of this cave running out and flew up high to get away. I escaped and got myself very high with little effort. It felt I had simply asked to be up high and moved so fast it’s as if I was teleported up. I was watching dinosaur-like creatures below me and I had a good sense of my surroundings, better than I would here on this plane of existence.
Anyways the dream ended there. I ended up starting to fall to the ground and lost control a bit of my flying as I blacked out in my dream as usual and turned paralyzed mid-flight. That’s when I woke up from my dream into this reality as usual. I look at it as two realities.
Thanks, I enjoy my reading. 
Have you had personal experiences, daytime/nighttime that fit in this category and if so, can you share?
Are you familiar with this book? It seems to have similar descriptions to the one you referenced above.
How does this square, if at all, with the Tibetan Buddhist teachings?
It’s possible to go from intense personal experiences (dreams, trips, spontaneous breaks with consensus reality) down a rabbit hole into belief in all kinds of grand conspiracy theories and weird cosmologies. I’d personally advise a heaping dose of skepticism in such matters.
Related: Conspirituality is a big and increasing problem currently.
I read a few Castaneda books back in the day. He was a very skilled Teller of Tales, quite convincing at times. In my reading the universe he describes is deeply paranoid, abusive, and devoid of love or empathy. One thing Castaneda was good at, in my opinion, was describing experiences that people either commonly have, or which can be evoked through suggestion – then telling you what’s “really” happening in such cases. e.g. have you experienced rushing noises around your head at the threshold of sleep and waking? Why, those are actual entities trying to prey on you! In this way he, and others like him, can lead susceptible people into deeply weird belief systems. This is not to say that it’s without value to critically engage with his work – for example Amy and Arnold Mindell have some very interesting takes on Castaneda’s literary metaphors in their Process-Oriented Psychology.
~ArthurG