It's not often that I weigh in with a big fan theory besides the odd comment on the Facebook page, however this theory has been building for a few months now so I wanted to share it with you all, especially given the events in Sunday's episode.
What happened to Baelfire when he went through the swirling green vortex? I believe that Baelfire was transported to our world, A Land without Magic. The vortex also acted as a time machine, much the way Mr Gold mentioned to August. It transported Baelfire through "the barriers of time and space".
I believe 14 year old Baelfire landed in our world in the mid 1990's. Can you imagine how confused and frightened Baelfire would have been. To suddenly find himself transported to the hustle and bustle of one of our biggest cities in the mid 90's.
Imagine also that the young boy, seemingly abandoned and alone, traumatised by the loss of his father, would appear quite strange and incoherent to anyone he met.
Where would a child like that be put? I feel strongly that Baelfire would end up in the care system, labelled as mentally ill. And who might Baelfire meet in the care system, our saviour Emma!
I believe that Baelfire became quite unstable. He may have been the one responsible for getting Emma into trouble with the police and also got her pregnant. Emma made it quite clear to Mary Margaret in "True North" that she had lied to Henry about his father and that he was definitely no hero.
Baelfire is Henry's father, making Rumple Grandfather and completing a truly dysfunctional family tree!