Thanks for the feedback! I actually didn't have the story all planned out. I just had some ideas I wanted to put into the game like for example the "Missing" flyers and children turned into puppets. Kinda was inspired by all these creepy Grimm-like children's stories. I will expand on the story in a content update. I agree that the figures don't really look spooky. I may change their appearance or keep it and add something else that takes the part of scaring the player :) In the end I think I want it to be some sort of puzzle horror adventure game.
I am glad you liked it and thanks for hosting this game jam!