I like how this divides the two main types of narcissists
I actually view an inverted narcissist as more of a codependent. Anyway…
The classic narcissist is overly self-confident and sees themselves as superior than other people. Think of a child who has always been told by mom and dad that they would be great, and then that child takes and internally distorts that message into superiority.
The compensatory narcissist covers up with their grandiose behavior, a deep-seated deficit in self-esteem. Think of a child who felt devalued but instead of giving up on life, resorts to fantasies of grandeur and greatness. This person will either live in that fantasy world or decide to create that fantasy world in real life.
So yeah, one thinks they are the shit, and the other lives in a fantasy world. So the first is deluded about themselves. The second is deluded about the world around them. It’s an interesting and important distinction.