This is a nifty concept which is pretty eerie :3 I guess I should put the rest under spoilers just to be extra safe!
SPOILERS
Love that glitchy background :D And the theme is something I've always found fascinating and terrifying in equal measure, haha. One of my favourite movies/plays of all time is Ghost Stories, and if you happen to know the way it ends, you'll know why I'm making that connection :3
Also, since it was mentioned in the game, I have to say that I experienced sleep paralysis once, and it was probably the most horrifying feeling I've ever felt in my life! It was like this overwhelming sense of dread, like I was being both stretched and crushed at the same time and there was nothing I could do about it. Afterwards, I sort of thought it was pretty cool looking back on it, haha. But I sure wouldn't be in a rush to experience it again because at the time, it was terrifying x3
Good luck with development! :3