For a free jīvan mukta, elimination of excessive influence of the mind (manonāśa) is the status of his mind. This jīvan mukta knows that the mind is not real, and that he or she is free from it, because of correct self-knowledge.

In manolaya the mind has become silent as in samādhi. The latter, however, is an experiential state, from which one will come out again. Whether the mind is silent or not, it remains mind. Freedom is being free from regardless of a busy mind or a silent mind, as the silent witness (sākṣī) of that mind, which is also its real substrate.

The joke is that ordinary deep, dreamless sleep (suṣupti), which every mortal experiences every night, is also manolaya.

Manolaya and manonāśa are just words, but are often interpreted that way in Vedānta to clear up misunderstandings about freedom.