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It is upside down in the sense that if you built a lens system like the eye, the image produced would be upside down.

The system evolved that way so it is never set "incorrectly" or "expected" to be the other way.

But that's kind of the point -- the orientation of the image on the retina is irrelevant, unless it's being looked at by a little man sitting right-side-up inside your head.

Fortunately, his eyes have their own set of lenses that flip the image the right way up again.

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