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Nightmare Fuel: AdventureQuest Worlds
The Fear Chaser event generally has this as its theme, especially for the Terrorkind monsters. If you thought the big baby doll head and several zombie baby doll heads in the area where you fight the Fear Feeder were creepy enough, just wait until you fight the big boss of the event: A gigantic, winged, skeletal entity simply called FEAR itself that not only has spiders crawling all over his body but also cries tears of lava! EEK!
Fear is more of a Nightmare Retardant. The thing that would be most fearful is the intro cutscene in The DoomWood Saga where chaos tentacles are going out of control on King Alteon's chaorupted body and slowly chaorupting him in a more terrifying looking way.
The Pie of Rising Evil from the 2011 Mogloween event couldn't have been more aptly named. That thing is creepy. Especially its voice, which has a hypnotic quality on those who hear it, and which uses their fears against them when that doesn't work in order to lure them to the shop so that it can eat them. The especially creepy scene was with Farmer Northrup of Willow Creek and his poor kid, who knows something is going on, but can't convince his father not to listen to the evil voice...
We know it's supposed to be rather dramatic, but come on! We all know Desoloth is a Magnificent Bastard, and that's why he frightens AQW players. Oh, but his magnificence isn't the only thing that frightens us. He nearly kills Galanoth, too, which is also more than enough to scare players even though it's considered very dramatic and is not actually supposed to be meant to do that. Galanoth leaps at Desoloth in an attempt to kill him, Warlic lets out a Big "NO!", and BAM! Just like that, Desoloth ACTUALLY bites off Galanoth's GODDAMN ARM! And in the next cutscene, the hero receives an Oh Crap reaction to seeing Galanoth having lost his arm (despite not actually getting an actual Oh Crap face). So there you have it, Desoloth NEARLY KILLS Galanoth by biting off his arm.
As if nearly killing Galanoth by biting off his arm wasn't enough, a short while after his death by the hero's hands, Drakath releases his skeletal remains from the Cor Draconis and Chaorrupts him into the Chaos-empowered Desolich. Oh, snap.
The Chaos Children and the worst of all is Stalkwalker trying to feed on the children's parents and trying to eat the children when they become adults as well as repeating the whole thing over and over again.
The Flood of Chaos event has a plague of Chaorruption sweeping Swordhaven, with its sewers purple with Chaos taint. The artists did a very good job in making Chaos utterly nightmarish, including incredibly freaky-looking Chaos Spiders and Rats. And to make matters worse, King Alteon, our wise and noble King of Good, has finally fallen to the ongoing case of Chaorruption that has been plaguing him all game since the Chaos Incident.