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Nightmare Fuel: A Nightmare on Elm Street 3: Dream Warriors
The "flesh marionette" scene.
Made worse with the sight of an enlarged Freddy controlling Phillip from the sky. Also dips into Tear Jerker territory, as the rest of the teens are forced to watch Phillip fall to his death from far away, and scream out his name, clearly worried about him.
The scene where Kristen snaps out of her dream with the killer bathroom fixtures, and realizes she's got a bleeding wrist and a bloody razor blade in her hand. Maybe it's just paranoia talking, but for a split second she's so disoriented, she may not have been sure she hadn't genuinely gone crazy and slashed her own wrist while hallucinating. At least you can fight Freddy, but your own insanity...
The concept introduced that Freddy absorbs the souls of his victims. When other slashers kill you, it's over. When Freddy kills you, he'll torture your soul for all eternity.
The former patient who cut off his own eyelids. Becomes Fridge Horror when you remember the scene that got Kristen committed, and that nobody ever found out how the kid got hold of a blade to do it...
Nancy keeping vigil over a comatose Joey; "Let him go you bastard!" Freddy's reply - COME AND GET HIM BITCH - is carved into Joey's chest for her to see.
The "Freddy wyrm" scene.
"Let's get high."
Poor Joey. He is a mute and cannot scream for help.