Hi, welcome to Superpower Wiki! Thanks for your edit to the Subjective Reality page!
No, its not the same thing. Subjective reality allows the user to manipulate the boundary between fantasy and reality. All that midnight is doing is distorting the light that reaches a persons eyes to make them think they are being harmed by an illusion, when in truth they haven't been harmed at all.
So no, he is not a user and never has been. He uses a limited form of distortion manipulation and nothing more.
Compare the powers that he has on the fairy tail wikia with the capabilities on the subjective reality page. and you will see he has never done anything remotely like that.