A friend saw a movie he can’t find. Here is his description. He would have seen this in the later 80’s.
“There was a really weird short animated movie (I want to say it was Italian or French, there were no words spoken though) I remember seeing as a kid about these little pillow-shaped beings that lived inside a sleeping man’s mind and built their civilization every time he went to sleep. Every time he woke up, their cities would collapse and break apart, and they’d have to rebuild when he fell asleep the next night. At some point they got fed up with it and built this huge electrified gate they could use to walk out of his brain while he slept. They plugged his ears and glued his eyes shut and somehow shrunk him and very carefully and quietly carried him back into his own head and kept him alive and constantly asleep so they could finally build their own cities in peace.”