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Nightmare Crag is a landmark located southeast of Koeglin Village in the region of Stormhaven. It is a place of worship and sacrifice for the Supernal Dreamers cult, which is loyal to the Daedric Prince Vaermina.
The Supernal Dreamers also took Ingride's daughter, Rozenn Vanne, and they are apparently planning a similar ritual using her as the vessel for some daedric spirit. The Vestige promised Ingride they would stop them.