Shadow Goblins
An urban legend that has begun to spread recently that is only often spoken of in harsh whispers. The most likely place of origin of this legend comes from the owner of The Baby Seal Club.
Story
The island of Yuriba has a fluid population that has ebbed and flowed sporadically. Countless residents have vanished without leaving farewell notes or saying goodbye. Sudden disappearances of long-time friends and loved ones are not uncommon to the long-term residents of Yuriba. Speculation to where they go is usually mundane: left in the night for their homes, accidental deaths, wandered off into the wilderness, or other likely possibilities.
However, someone heard it from their sister, who heard it from a friend of a friend that was up at Moonglow Shrine one night reading about Akibimi when they saw two tiny purple skinned women with ebony hair cloaked in black carrying a squirming bundle behind the shrine. Investigation into the matter found no sign of any one save for two sets of tiny footprints. but the sister's several times removed friend was discovered to be missing and not seen since.
Several more sitings of these tiny, goblin-like women were spotted near the bridge during a new moon after midnight one winter where they attempted to grab a rarely seen resident and carry her off. They were thwarted by the would-be victim's magical abilities. This unnamed woman was supposedly a priestess of Zansho claimed that they wore clothing with markings of the goddess Tsuki and are part of a secretive and hidden cult that lives under her shrine, unbeknownst to others.
This group steals isolated members of society and takes them underground where they are forced to undergo a magical transformation into smaller bodies, long hanging ears, sharp fangs and over sized claws. If the victim does not join, they are forced to remain in total isolation until they join or die. They can be thwarted by normal means, or by invoking the name of a loved one.
Other "sightings" include Phantasm Harbor, Pixie's Pride Inn, as well as the cavern structure below Yuriba village.
Accuracy of Claims
Currently these claims cannot be verified, as no sign of these creatures can be located at Moonglow Shrine or in any of the places they claim to have been seen. Likewise, the name of the aforementioned priestess has not been revealed, nor has the names of the actual victims. It is highly unlikely these creatures actually exist, but the question "Where did X vanish too? Have you seen her lately?" begs to be answered one way or another.