Because the Sara incident sparked his memory. (That's when he started losing sleep.) His mind was melding the two incidents together. The meditation with Ollie separated them so he remembered the true incident (with the cop), and realizing his "memory" of Sara was just a dream.

Also, I don't think it was Cupid. She would have used those heart-shaped arrows. Why would she go anywhere near black arrows?

I still say Ra's did it.

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Also,

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Season 3 was pretty bad imo... and what an awful ending.

Hopefully the new season will be better... though I'm not sure what to expect from this show now..

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