In Bloodborne, the Hunter's Dream is a safe, serene place, free of monsters, deathtraps or anything else that is otherwise trying to kill you. So why, you may ask, does it look like a graveyard? Some enterprising players have discovered a way to die in the Hunter's Dream, using well-timed leaps off its highest point to drain their HP one inch at a time. It's a slow, and I can only imagine, painful way to go, but gosh, is it funny to look at.
Of course, the question remains: What happens when you die in a dream? Do you die in real life? Do you go one layer deeper into the dream, a la Inception? Or do you just respawn right there, leaving your own silly recording of your death? We may never know, but probably the latter.