I think Deadman is being confused with the Spectre.
I'm curious if this is based on the original idea for what became the JLU episode "Epilogue." Instead of Amanda Waller creating a "son" for Bruce Wayne via "overwriting" Warren McGinnis' DNA with Bruce's, it was Selina Kyle. I'm not sure where I read this, but I think it was going to be the plot to another "direct to DVD" Batman Beyond movie.
Personally, the only parts of Epilogue that really confused me were the black and white scenes. I thought they were flashbacks, not Terry's imagination.