Insanity Creatures

Hallucinations are hostile Mobs that begin to attack player upon reaching 30 sanity points or lower. They will spawn once the player's sanity levels are below 100, and become gradually more visible as the players sanity level drops further.

While neutral, they cannot be attacked and will not obey physics. If hit, they will disappear in a puff of smoke, and reappear somewhere in the close proximity of the player. Up to three will spawn around the player, and begin to attack. Upon being killed, Hallucinations will sometimes drop Nightmare Fuel, used for crafting several magic items. The sanity meter will drop by both standing near and fighting Hallucinations, but will raise by at least 15 points when killing them.

Crawling Horror
Originally believed to be the name of all the Hallucinations, the Crawling Horror is now known to be just one type. It is a large tick-like creature, with many legs, and is the most common of the Hallucinations. Crawling Horrors turn aggressive when the player's sanity is 30 and below. Walking near these will decrease Sanity. They give 15 Sanity when killed.

Terrorbeak
The Terrorbeak is a creature with an enormous beak and slim body, with several small legs. Like the Crawling Horror, it will attack the player, but is less common. Players can attack them most easily by trapping them on the coast or by hitting them with a Boomerang. If you are being attacked by Hallucinations, killing a Terrorbeak is a good way of stopping the attacks, as they give 33 Sanity when killed causing Hallucinations to go neutral again, even at 0 or 1 sanity.

Mr. Skits
Mr. Skits is a small serpent like creature that will watch from afar.Upon attempting to reach Mr. Skits, it turns and slithers away. They are harmless, and cannot be attacked. Mr.Skits may also flicker on the screen for a fraction of a second, then disappear without any animation.

Shadow Watcher
It is long and thin, with many tentacles sticking out of its head. This Hallucination is harmless and cannot be attacked. It will not disappear when stood on though, unlike Night Hands. It only creates creepy atmosphere, otherwise it is nothing.

Night Hand
These are a pair of hands that extend from the shadows. While not directly attacking the player, Night Hands will attempt to do damage by putting out fires. When stepped on, they will shrink away into the darkness momentarily but will repeatedly attempt to put out the fire. Running towards one of the Night hands until the player is in complete darkness will eventually cause it to vanish, a process that is repeated to rid the player of the other. It is not recommended to have low burning Campfires (It only extinguishes them a bit at a time). The only warning of a Night Hand is the sound of a Music Box playing. There may also be more than one Night Hand at a time, which can be very dangerous if the player is fighting a mob and will require them to keep running towards the Night Hands, and there will be more than one Music Box sound playing. The hands have been compared to Maxwell's Hands on the start screen of the game. Night Hand has Insanity Aura -40/min.

Eyes
When your sanity is below 160, several eyes will pop out of the darkness. They are purely for atmosphere and do not affect anything. They do however disappear when directly stood on.

Trivia

 * Hallucinations will go straight through walls while not aggresive, but if sanity is 24 or lower, they will manifest into a physical form and won't be able to pass through them.
 * They become less and less transparent the more insane the player becomes.
 * The Hallucinations can appear the first day/night, provided you manage to lower your Sanity quickly enough.
 * Mr. Skits sometimes "flashes" and turns everything else dark for a split second.
 * Their behaviour has references to the monsters in Lovecraftian literature. Being that they are so otherworldly they cause humans to go insane and their ability to move through dimensions.

Bugs

 * Hallucinations can be attacked before becoming insane by walking through them and hitting spacebar.
 * Sometimes, Shadow Watchers will not disappear when day breaks, but a few seconds after.
 * Sometimes, after defeating a Night Hand, the music won't stop playing.