DUDE I LOVE PARTIES
Yay Grace's party, the greatest story arc ever written! I love how... half formed Ellen's alternate universe is. Like, there are furries around! Because! And yet everyone else is still the same! Because! Also, the skull represents Damien because they have the same array of horns. That's all that you need, right? In short, the lesson here is: never ever write a storyline made up of nothing but your characters' dreams unless you know what you're doing. Also, mind rape is bad, and Dan should feel bad for casually using it as a plot point.
I don't think that the Skull and the thing Grace-sue hugged was Damien, I think it's the Lepusko? is that it's name? when Grace goes Omega,she was three tails and the same pattern on the face as the...thing, and when she goes angry (AKA Ugly cute instead of Cute) she has the same horns and spickes on the tail so basically, Grace had the equivalent of a human having bad dreams about a scary MONKEY skull FAIL