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theory time
me wondering how she just up n died after being alive for so dam long
[1] Fayed died cuz she was lying about what she was, and it only started to do damage to her after Atreus was born. Like her lying about her nature and what she was, and it was slowly killing her.
Also its nuts how this whole ass journey to spread her ashes jumpstarted Ragnarök 100 years ahead of schedule. Jumping into my 2nd theory as for why/how she died. warning this one is more lose and stringy:
[2] Faye knew what future would have looked for Kratos and Atreus if she lived, the distance between her husband & son was awful, it may have never gotten better over the years. Cue 100 years later and Atreus fully resents his father for never being there for him despite living in the same dam house. He abandons the name his father gave him, wanting to sever all ties to him. Embraces “Loki Laufayeson” and then we get regular mythology shenanigans and the end of everything. Except Kratos cuz he can't die, so he’s just alone in his grief guilt n whatnot, and Atreus just straight up dies like in actual mythology.
She knows something needs to give in order for her husband and son to come together. What do they both love unconditionally and openly? Her. While she isn't immortal I doubt it would be easy to kill her. So she poisons herself, before, she makes sure Kratos WILL spread her ashes at the highest peak in all the realms. She KNOWS Kratos will do this, obviously taking Atreus with. The two will come closer, for her sake. Someone they both cherished deeply, they go on their journey like usual. Its just a matter them doing so triggers the end(Baldor dying).
Fayes 1st thought was to save her husband and son from their demises and fate, the realms being spared was just a kick-ass bonus. If it meant her death then so be it...
Anyway thats it for now, this felt more like rambling then actual theorizing but oh well