A random event triggered by Chie going to sleep in her dream world bed. It can only be unlocked if Chie gets the Axe effect, and by a 1/6 chance when Chie enter the dream.
The screen would fade to red. You will then find Chie's sprite standing in pitch blackness. You can keep walking ahead until you find another Chie with a bloody face. Interacting with the second Chie will cause your Chie bring an axe to kill her.
The screen will fade out to red again and Chie wakes up, but is still in the dream.