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Question: Can you find a movie from the 80s or 90s where there's a perfect town full of perfect people but one day they all get trapped in a flipped, upside down version of the town?
The movie you're most likely thinking about is "Pleasantville" from 1998. While it doesn't exactly match your description with an upside-down town, it does feature a seemingly perfect town and people that exist inside a 1950s television show. The main characters, played by Tobey Maguire and Reese Witherspoon, are transported into this show where they eventually start changing the town and its "perfect" people.
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