"It's a place where dreams come to die, and lost souls eat pizza and stuff."
The Flipside is a place where Lost Souls retreat to.
The Flipside allows souls to remain intact, even if a soul's vessel commits an atrocity in the name of vengeance. There are numerous layers to it that each resemble a different era of Freddy Fazbender's Pepperonerie. Currently there are two layers known, Layer 1 which resembles '90s joints and Layer 2 which resembles '80s joints.
The Flipside has 8-bit DSAF locations and Dave will explore with you. While interacting with objects inside of the Flipside, he will give exclusive commentary on that object but will only give the full dialogue once and will shorten it the next time. In this area you will have to battle enemies. As well as 2 bosses (as of now) Jacob and Dee.