Eyu

Alligator in Mandarin.

They were cursed by an eldritch being, as they were transformed into an unrecognizable reptile-like form resembling an alligator.

The locals would see a strange figure circling their village, resembling a giant reptile leaving massive puddles of red mist and blood.

The village was surrounded by this strange red mist as the village was closed off. No one has heard of the village since.

Fun Fact: They were originally made as fan art for a survival horror game monster from "Pillar chase 2" on Roblox