Nightmare Teddy Quest/Spoiler

When the Nightmare Isles MWC is active, travel to Darama in order to find a portal which, depending on the specific message, will have appeared here, here or here. You will be teleported to the Nightmare Isles, which are filled with Silencers, Retching Horrors, Choking Fears, and Terrorsleeps.

Make your way onto the islet containing the only six Terrorsleeps. You will find a Chest of Drawers (Object) here, which can only be opened by players who have killed all Terrorsleeps by themselves. After doing so, use the drawers to open them and receive your reward, a Nightmare Teddy.