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Nightmare Fuel: Dragon Ball
Tao Pai Pai, the most evil villain in Dragon Ball, certainly is Nightmare Fuel. Especially considering he is the most feared man on the planet Earth. In addition, he is a sadistic mercenary who is even willing to kill children.
The scene where he kills General Blue is somewhat disturbing, too. note He does it with his tongue.
So you're watching the last few moments of Goku's fight with Piccolo, all is right, Goku gives a thumbs up to all his friends as they shout the countdown. Right when they get to nine, Piccolo gets up and fires a mouth beam straight into Goku's right shoulder. And this isn't Z where a direct hit from a beam causes some external wounds, and maybe torn clothes or something like that. No. This is Dragon Ball and Goku now has a hole he can stick his hand into under his shoulder. After writhing in pain for a while, Piccolo gets up and begins stomping on the wound over and over as Goku grabs the ground in pain. All the while, Piccolo is grinning ear to ear, and even laughing. Tenshinhan, Yamcha and Krillin try to help but Piccolo stops them before they can enter the ring. Goku, the badass, still manages to get up and get in an attack before a swift kick from Junior reminds him he has a giant hole in his body. Junior, the prick, then elbows Goku, right in the wound, followed by more blood curdling screams. And just to add injury to injury, Piccolo breaks Goku's leg.
Speaking of Piccolo, the original Demon King manages to give a No-Holds-Barred Beatdown to Goku so badly that it stopped his heart.
Goku becoming an Oozaru right before Bulma, Yamcha, Oolong and Puar's eyes.