Well, say I had the open set A. Then by definition, if a is an element of A, then the open interval (a- $\epsilon, a+\epsilon$) is also a part of A. So if a+$\epsilon$ is a part of a, then since A is the open set, a+2$\epsilon$ must be a part of A as well. So on and so forth, we get that every number is a part of A. So If A is an open set, then A is a subset of the Reals and the Reals is a subset of A?
What's wrong with this interpretation?

You are missing that it says "there exists" an $\varepsilon$. So you cannot just pick any $\varepsilon$ regardless of what $a$ you pick.