Among the text for COLOSSAL RETALIATION: REARRANGE REALITY is this phrase:
"Place Dormammu such that he can make a close attack targeting the chosen character and also target all other characters within 2 squares."

Within 2 squares of what? Dormammu's base? The target character? I can see arguments for either.

2 squares from himself. If t had been 2 squares from the target it would say so.