Does Valis only become reality when it is observed by a human mind? Reality doesn’t exist until our internal signal, which is one half of Valis, joins with the external signal, or other half of Valis. This makes Dick Valis and not Valis. If that sounds confusing it also didn’t make much sense to him.
When the inner and outer signals are superimposed we get coherent information and reality springs into existence, but localized and only temporarily. Based on this idea the self is everywhere like the Buddhist concept of Saṅkhāra. Valis is both in the world but not in the world, more like an event which creates the world when it joins with the human mind.
What Dick saw in 3-74 was a combination of matter, mind and energy. These aspects together created a fourth thing which he has trouble describing. Matter ceased to be matter and mind ceased to be mind. He compares it to a musical score or encoded information which became reality, but wonders how he managed to perceive it. Did he do it or was it done to him?