I believe that red jhon is jane's brother Jimmy who is also Brett Partridge after changing his name . PJ is feeling guilty about his brother's death ; and he doesn't know that he survived ; that explains why RJ is just playing games with his brother ; and about that happy memorie I think that Jane has told it to his brother ; they are brothers that's why the end is going to be disappointing for Patrick
I am just guessing here but that's how the show works
If I am correct the question would be why would Brett killed his brother's wife and child?