i forgot that loki faked his death in the first thor movie as well as the second one. like i think this is just something he does. i bet he did it every other week when they were kids like theyre 12 and loki breaks some fancy asgardian vase in the course of a prank and hes just like welp i guess i better fake my death
corrollary: even at the peak of his Faking His Death phase when both frigga and odin have just learned to take in stride thor still 100% believes it every single time it happens like its literally every other weekend he comes running into his parents room in tears like FATHER, MOTHER, LOKIS DEAD, IM THE WORST BROTHER EVER and they just look at each other tiredly and wait for heimdall to come and tell them where hes hiding this time
My favorite Ragnarok headcanon is that the entire movie is a story Thor is telling the audience. That’s why it opens with a monologue, that’s also the reason of the sudden tone shift into comedy and that’s why despite all the horrible things that happen, it’s so endlessly optimistic. The real events that transpired were probably very similar, just much, much darker.
This really explains so much, like how characters like Loki and Hulk, and Thor himself, are so different from the other films- because we’re seeing them through Thor’s eyes. The dialogue is different as well, much more casual and shorthand with use of slang in place of the typical Shakespearean lines, because Thor is paraphrasing in his retelling of the events. I like to imagine that Thor’s audience is actually the asgardians on the ark at the end of the film, mostly families and children, so he’s ramping up the goofiness and drama (you are now meeting the grandmaster, please dont cut my hair, get help), using childish humor (the naked hulk), and poking fun at everything (surtur’s big eyebrow). They were all just extremely traumatized, so Thor is taking care of his people in the only way he currently can- taking comedy theatre tips from loki.