Readers of the Umbrella Academy comics will already know about the Hotel Oblivion, which Sir Reginald Hargreeves (played by Colm Feore in the Netflix series) used to house all the enemies and villains the team faced during their original super-heroic crusade. Unsurprisingly, keeping a bunch of supervillains locked up in one place usually leads to disaster, so it makes sense that Reginald put them all in an alternate dimension. The Netflix series has taken some liberties with the source material, so it would make sense if Hotel Oblivion was ... on the Moon instead. As Redditor u/WhyRtheresomanyofU speculates, "[In season 2], Reginald has something hidden on the Dark Side of the Moon. Something he's willing to disrobe and kill to protect. I'm guessing it's the Hotel Oblivion, where all their enemies are housed."
Because Ben's Lovecraftian-like abilities allow him to open up a portal in his stomach to unleash a horde of horrific tentacles which tear his enemies to shreds, it wouldn't be surprising if Reginald had some concerns over the true extent of his powers. If this was the case, it isn't impossible that the children's bizarre adoptive father faked Ben's death to protect the world, locking him away in a comatose state in the Hotel Oblivion.
But yes, before you ask, what about Ben's heroic sacrifice? Well, we already know Vanya's powers can reach the Moon (hello, Apocalypse Suite), so maybe the light Ben saw was her abilities beaming him back to his body. So, if Ben's really alive and being kept in a comatose state, that would explain why he's aged up from when he died at 17.
Whether or not the series will head to the Hotel Oblivion in season 3 remains to be seen, especially since it introduced a brand-new timeline and a new set of characters, the Sparrow Academy. How are Ben and Sir Reginald still alive? Why is this Ben more intimidating than the lovable spirit we knew before? Only time will tell.