An interesting idea. I did find the movement quite clunky. Holding down a direction allows you to move really fast, however I do find it a bit awkward that you move immediately upon holding the direction you want to move, but pause for a not insignificant amount of time before you actually begin moving automatically. This pause happens every time you try to change direction and is when I got caught 99% of the time. The only way I found to avoid this delay is to spam the direction I wanted to move in.
Also I wish I was able to move diagonally.
Other than that, I think this is cool. Maybe require the guards to flash you several times in quick succession before you actually get hypnotised.
Oh, and it does seem a bit brutal that guards can keep hypnotising you while you're hypnotised.