Abstract. We establish an injective correspondence M −→ E (M ) between real-analytic nonminimal hypersurfaces M ⊂ C 2 , spherical at a generic point, and a class of second order complex ODEs with a meromorphic singularity. We apply this result to the proof of the bound dim hol(M, p) ≤ 5 for the infinitesimal automorphism algebra of an arbitrary germ (M, p) ∼ (S 3 , p ′ ) of a real-analytic Levi nonflat hypersurface M ⊂ C 2 (the Dimension Conjecture). This bound gives the proof of the dimension gap dim hol(M, p) = {8, 5, 4, 3, 2, 1, 0} for the dimension of the automorphism algebra of a real-analytic Levi nonflat hypersurface. As another application we obtain a new regularity condition for CR-mappings of nonminimal hypersurfaces, that we call Fuchsian type, and prove its optimality for extension of CR-mappings to nonminimal points. We also obtain an existence theorem for solutions of a class of singular complex ODEs.