The Sheep

The Sheep was a demon that stalked the Glitched around the Institute during the events of Soulcreek.

Its exact nature, where it came from or what its motivations are is currently unknown, though it is most certainly hostile. It was known to collect the Faded and suck the Aether from them, essentially cannibalising them - its purpose for doing this is also unknown.

Soulcreek
The Sheep first appeared during the opening of Soulcreek, where it stalked the Glitched all the way down to the lower levels of the Institute soon after they'd woken up. Later on, a group returned to the spot they believed might have been its lair to find the bodies of Faded, sucked dry of the Aether.

A close encounter with the Sheep occured a few days later, whereby a group attempting fetch Minvera's core managed to hide from it, though barely. Whilst there, they recorded a sound that it produced - though they couldn't figure out what purpose the sound served. They later deduced, following an encounter with Dr Jeff Cakes, that prolonged exposure to the sound had an adverse effect on ones' sanity.

Sam later claimed she;d spotted the Sheep, being the first person to physically see it, while escaping from a burning building after an attempt to rescue a survivor. Since nobody else had seen it, and she was convinced it was the same 'Sheep' from the Institute despite having no knowledge of what it looked like, her sighting was mostly put down to being an Aether induced hallucination - caused by using the Soulcreek prototype.