Hypnosis sounds very related to dreaming if you ask me. Im not a pro, but I know it relies on your subconscious and sleeping to make you do weird stuff. It looks like a method that is done in steps.

Step 1: The hypnotist puts you to sleep. Pow. Now you are very vulnerable to suggestion at this point.

Step 2: He dictates your mind a scenery or situation. A dream forms into your mind, just like when you normally sleep.

Step 3: Heres the thing. Somehow, he manages to convince your body that you are awake, when you really arent. When he tells you to wake up, this information is processed and identified as if you are really up. This lifts Sleep Paralysis, causing you to act out your dream.

Just a theory here, but im thinking this form of hypnotism is closely related to dreaming