Gonna have to disagree with option 2 and just go for option 1. Reason being is that there is no reason that the neutral zone can't just share the time axis of the all encompassing hypertimeline instead. We would need further proof of the neutral zone actually having its own distinct time axis, unlike the macrocosms which have separate origins of times, and spaces that lack the concept of space and time separating them so that they must be encompassed by separate, distinct time axes. I feel it would be much safer to just say hit is just manipulating the hypertimeline instead. Because as we already know, just as how multiple spacetimes can share 1 time axis, there is no exception for the neutral zone, unless again, we have further proof which I personally feel that we lack.