Donkey, a fuller description of Mystical Manipulation from the book can be found here:
www.culteducation.com/brainwashing19.html
I think what you are describing actually falls under 'The Sacred Science' category rather than 'Mystical Manipulation'.
I don't want to copy and paste the whole eight, but this is what he describes as Sacred Science:
The totalist milieu maintains an aura of sacredness around its basic dogma, holding it out as an ultimate moral vision for the ordering of human existence. This sacredness is evident in the prohibition (whether or not explicit) against the questioning of basic assumptions, and in the reverence which is demanded for the originators of the Word, the present bearers of the Word, and the Word itself. While thus transcending ordinary concerns of logic, however, the milieu at the same time makes an exaggerated claim of airtight logic, of absolute "scientific" precision. Thus the ultimate moral vision becomes an ultimate science; and the man who dares to criticize it, or to harbor even unspoken alternative ideas, becomes not only immoral and irreverent, but also "unscientific." In this way, the philosopher kings of modern ideological totalism reinforce their authority by claiming to share in the rich and respected heritage of natural science.
The assumption here is not so much that man can be God, but rather that man's ideas can be God: that an absolute science of ideas (and implicitly, an absolute science of man) exists, or is at least very close to being attained; that this science can be combined with an equally absolute body of moral principles; and that the resulting doctrine is true for all men at all times. Although no ideology goes quite this far in overt statement, such assumptions are implicit in totalist practice.
At the level of the individual, the totalist sacred science can offer much comfort and security. Its appeal lies in its seeming unification of the mystical and the logical modes of experience (in psychoanalytic terms, of the primary and secondary thought processes). For within the framework of the sacred science, and sweeping, non-rational "insights." Since the distinction between the logical and the mystical is, to begin with, artificial and man-made, an opportunity for transcending it can create an extremely intense feeling of truth. But the posture of unquestioning faith - both rationally and non-rationally derived - is not easy to sustain, especially if one discovers that the world of experience is not nearly as absolute as the sacred science claims it to be.
Yet so strong a hold can the sacred science achieve over his mental processes that if one begins to feel himself attracted to ideas which either contradict or ignore it, he may become guilty and afraid. His quest for knowledge is consequently hampered, since in the name of science he is prevented from engaging in the receptive search for truth which characterizes the genuinely scientific approach. And his position is made more difficult by the absence, in a totalist environment, of any distinction between the sacred and the profane: there is no thought or action which cannot be related to the sacred science. To be sure, one can usually find areas of experience outside its immediate authority; but during periods of maximum totalist activity (like thought reform) any such areas are cut off, and there is virtually no escape from the milieu's ever-pressing edicts and demands. Whatever combination of continued adherence, inner resistance, or compromise co-existence the individual person adopts toward this blend of counterfeit science and back-door religion, it represents another continuous pressure toward personal closure, toward avoiding, rather than grappling with, the kinds of knowledge and experience necessary for genuine self-expression and for creative development.
In 'ultimate moral vision' Lifton refers to, in the case of TRAs, is not about god but more of a utopic vision. I think an example of this was demonstrated very well by Owen Jones in this tweet a few days ago:
Owen Jones@OwenJones84
Hi! I'm very passionate about taking on homelessness. For the same reason I oppose transphobia, because all injustice is wrong, and we don't solve any injustice by having Oppression Olympics. Glad to help!
All Injustice Is Wrong. (As it everyone else who doesn't agree with him to the letter is well up for a bit of oppression).
Its a utopic vision, which is very black and white and without nuisance or critical thinking (note the way that he dismisses this as 'Oppression Olympics' and almost suggests that there should be 'one true way forward' we should all be following without question if we believe in getting rid of injustice). The road to hell and all that jazz.
As you say, the 'sacred science' is stuff like born in the wrong body and the suicide argument / promotion.