The Jester Loop

After a personal collapse and the breakdown of his marriage, exhausted father Eli Mercer moves with his toddler son Mason into Blackwater Estates, an impossibly wealthy suburban neighborhood that appears almost too perfect to be real. The residents greet them warmly, but Eli quickly notices disturbing inconsistencies: neighbors who never blink, children who repeat conversations before they happen, and streets that subtly rearrange themselves overnight.
During a nighttime "welcoming drive" with several neighbors, one of the residents, Graham, suddenly snaps Mason's arm with cold curiosity. In a burst of rage, Eli kills him. But the next morning Graham is alive again - smiling on Eli's porch as if nothing happened.
Eli soon realizes he and Mason are trapped inside a looping reality controlled by entities masquerading as humans. These beings - which Eli begins calling "machine elves" or "jesters" - manipulate reality like actors performing a cruel stage play. They wear human faces like costumes, distort time and memory, and feed on emotional suffering, fear, guilt, and repetition.
Every attempt to escape resets the world.
As the loops continue, reality becomes increasingly unstable. Eli discovers underground theaters filled with mannequins, televisions displaying alternate versions of himself, and evidence that countless previous loops have already occurred. Some versions of him committed suicide. Others became violent. Others willingly joined the entities.
The horror deepens when Eli and Mason briefly escape to a coastal town, only to discover the infection extends beyond the neighborhood. Killer whales wash themselves onto the beach while fishermen peel back their skin, revealing grinning machine elves beneath. Eli realizes the creatures are not confined to Blackwater Estates - the entire world may be part of the illusion.
Throughout the novel, Mason begins exhibiting strange awareness of the loops, speaking cryptic truths and recognizing things before they happen. Eli slowly learns the entities are not merely torturing them - they are containing something. Mason may possess an unknown connection to whatever exists beneath the simulation-like reality.
Eventually Eli discovers the source of the loops beneath the neighborhood: a buried theater ruled by the "Jester King," a shapeshifting cosmic entity surrounded by thousands of alternate versions of Eli trapped across endless timelines. The Jester King reveals that humanity itself may be a performative construct - emotionally networked beings controlled through fear, trauma, and repetition.
The final act forces Eli to confront an impossible choice: escape alone and abandon Mason, or destroy the loop entirely and risk awakening something far worse hidden beneath reality itself.
In the ambiguous ending, Eli appears to wake up in a hospital beside Mason's bed, seemingly free from the nightmare. But as distant laughter echoes through the ventilation system and a nurse smiles too widely, Eli realizes the loop may never have ended at all.