Hey, thanks for the feedback. The preview build actually lacked the note that states that Thorn the latex werewolf tormenting you actually pauses when stared at. There will is now a comic in the first nursery safe-room that hints at her ruleset.
Overlay has since been reworked to fit the game's theme more and there is a VHS available in the safe room and isn't as small as it was in the preview build.