So what do you people think originally happened?
I find it funny that none of the lets pays I have seen so far (2) noticed that people with Neuromods exist in other space facilities and even on earth (we are blatantly told one of the Talos crew members left a while ago) blowing up the station would accomplish very little and wouldn't stop the typhon invasion that is/was coming.... this is why I think that is exactly what happened, the Original Morgan Yu blew the station with himself in it (few people survived), Alex and the survivors where transferred to that other space station to continue their research under a tighter leash, but it was too late and the earth has been invaded already. However in the little hallucination we are given (The Typhon telling you they are lying) you see that not the whole earth has been fucked.
I need to sleep, but the idea is:
Alex and a few others survived the original Talos-1 facility while Morgan stayed behind to blow the station and himself up (because he was tainted with their powers hence why he could survive the outbreak without respawns and do overs), however this wasn't enough as the Typhon hivemind had already noticed earth (senpai don't notice me) and invaded later. Earth has not fallen completely (YET) but its clear the battle is unwinnable, so the new strategy is to give the hivemind a little of humanity to try to convince it we are more than food, hence plot hook for 'Prey' Two.