Next character from my group is Tracy Kwong. An outcast growing up, Tracy was diagnosed having an altered reality disorder, and as been receiving therapy for it, even having been institutionalized for a while.
It turns out the reality is that Tracy’s altered reality disorder is actually caused by Tracy’s natural ability to see into the shadow world. While all the other characters learn to see the truth about the world after the most recent merging, Tracy had been born with the ability, and haunted by it her whole life. So the scary biker she thought was a troll, the hippie shop owner of that organic vegan grocer she thought was an elf, or the street gang calling themselves The Hobgoblins that she believed to be literal hobgoblins, turns out she was right on all counts.