Outer Most Simulation
The universe is the Omega machine therefore all subsequent sub-levels are in the Omega Simulation and are constrained by its limits (c=3e8 etc.) while simulated scenarios exploit Bell's Theorum (every particle in the sandard model is entangled with all other particles in the universe).
Second Level Simulation
The Technium, a combination of the artifacts of Biology (DNA) and of Rough Beast (ZNA) has quantum computing machinery capable of Matrix pseudo-reality. A Post-Singularity, massively parallel EM construct selects compelling scenarios that 'solve' paradoxes and never ending games. We see only the architecturally significant I/O where Section 9 wins. These are bifurcations in the logistics map which spawn compelling future scenarios. This is merely a convenient sub-routine of the Omega simulation. Note that in this model all memories and experience 'before' the singularity are simply sub-routines 'after' the singularity for the EMs.
Third Level Simulation
These are multi-verse possible world simulations that make compelling drama. That is, they don't begin and end with detection and correction that happens very quickly or very slowly and are therefore of little interest. Or perhaps only 'open-ended' stories that can be strung together into a season or a movie hold interest. At this level people and things are material artifacts of 2030 technology that occupy space and move about in time but are deterministic (in the sense that there are stochastic not wildly random networks of causation).
Fourth Level Simulation
It is just a damn cartoon that puts our cognitive processes to work toward a goal of realizing these future events. After you have seen the Matrix, you cannot un-see it.
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