The novel was kinda like his past life....I am not sure how Iheon and huimin were trapped in huimin's made up world, where the omegas who were kind to him became his mother and sister...I think he had no father. And then idk how they reentered their past life but before all the shit happened (I mean he still got sold but...Idk better than having a miscarriage ig) Iheon remembers both lives not from the beginning but at some point like you might have surmised already....after that I also don't know what happens...the mtl became too confusing
Spoiler warning attempt lol
.
.
.
.
.
.
.
.
.
.
.
.
I think the "I'm trapped in a novel" is how his brain is coping with the fact that he died in his previous life after suffering through endless trauma. Iheon seems to remember a majority of what happened, but I'm guessing that's due to him being less traumatized than Huimin. The brain works in weird ways to help people deal with the shit they've been through.
It's either that or his wish for them to be happy in their next lives jacked with his memory. Made him believe he's just an observer suddenly thrust into a fictional world rather than the person who actually lived through all those horrible experiences. Huimin believes he's correcting the events in a fantasy world in a book when in reality he's actively working towards his wish for the two of them to live and love one another happily.
These are the two theories I've cooked up after binge reading from start to current chapter. It makes more sense this way seeing as it wouldn't make any sense for Iheon to remember their past lives if he's supposed to be an unassuming love interest in a novel. A character that has all of their actions predetermined by some omniscient being wouldn't need to remember the events of the book they were written into.
SPOILER
the novel was actually his past life? did he get his memories wiped after the gunshot? (this is so confusing TT)