Mr. Hat and the Shadow people

No one knows the origins or real intentions of Mr. Hat and the shadow people, but their influence is felt in every dark corner of the globe. They come from a place that is between waking and dreaming. They are the blackness in the corner of your eye you thought you saw, but when you turn to look, there is nothing. Unlike most of the creatures of the paladin case files, the cases of the shadow people are not isolated incidents, every person from around the world has claimed to have seen or felt them in varying degrees.
Their hauntings seem very random, but they are most likely drawn to places of strong negative emotion, causing night terrors, insomnia, unexplainable nightmares, and, in extreme cases, complete insanity. we are not sure if Mr. Hat himself is a type of demon, or a completely different type of entity altogether, but he is seen the most out of all of them. What his purpose in these night visits is unclear, but he is always seen before the arrival of the shadow people, which gives rise to the theory that he is their master, or at the very least, a mere precursor to what's to come.
when a house gets invaded by the shadow people and left unchecked, they can tear apart families, destroy lives, and even kill.