Abstract The Dead Universe Theory (DUT) predicted the existence of compact, red, and massive galaxies at extreme redshifts (z ≈ 9–20) through its Quantum Simulator as early as March 2025. These objects, referred to as Small Red Dots (SRDs), arise naturally in the DUT framework as low-entropy structures formed shortly after the cosmic inflection point. Subsequent JWST observations confirmed the existence of equivalent sources, including CAPERS-LRD-z9, JADES-GS-z13-0, and CEERS-93316. While such findings strongly challenge the ΛCDM timeline for early galaxy formation, they are a direct and expected outcome of the DUT cosmology. This convergence highlights DUT’s predictive power and its role as a falsifiable alternative to standard models. Recent observations by the James Webb Space Telescope (JWST) have revealed a new population of obscured active galactic nuclei (AGNs), known as Small Red Dots (SRDs), which challenge the conventional CDM timeline for supermassive black hole (SMBH) formation. Here we demonstrate that these SRDs are predicted within the Dead Universe Theory (DUT), where the observable universe is the entropic remnant of a prior collapsed structure, embedded within the gravitational core of a non-singular black hole. Using the DUT Quantum Simulator (v4.0), we replicate the spectral, structural, and dynamical properties of SRDs without invoking dark matter, inflation, or super-Eddington accretion. Our results offer a new pathway for interpreting primordial black hole signatures as gravitational fossils of a thermodynamic retraction phase, providing strong empirical validation of DUT over ΛCDM. Citation Almeida, J. (2025). Small Red Dots and the DUT Framework: Simulating Hidden Black Hole Nuclei in a Collapsing Cosmological Geometry. Zenodo. https://doi.org/10.5281/zenodo.16879286