  We use D-instantons to probe the geometry of Misner universe, and calculate
the world volume field theory action, which is of the 1+0 dimensional form and
highly non-local. Turning on closed string tachyons, we see from the deformed
moduli space of the D-instantons that the spacelike singularity is removed and
the region near the singularity becomes a fuzzy cone, where space and time do
not commute. When realized cosmologically there can be controllable
trans-planckian effects. And the infinite past is now causally connected with
the infinite future, thus also providing a model for big crunch/big bang
transition. In the spirit of IKKT matrix theory, we propose that the
D-instanton action here provides a holographic description for Misner universe
and time is generated dynamically. In addition we show that winding string
production from the vacua and instability of D-branes have simple uniform
interpretations in this second quantized formalism.
