I'm sorry, I find this hilarious. This story has been on the web for....well, months now I think. I found it a while back when CR on Thatguywiththeglasses.com did his LP of Story of the Blanks, and he mentioned it was Cupcakes all over again(Note, SotB isn't quite this dark, and more uses Zombie Ponies to great effect). I got curious, googled it, and found this, as well as all the vids and stories made based off it. And there's a bunch, seriously, go type this into youtube and see what you get, a lot of the fake movie trailers for this are awesome, and have some great music to build the creepy factor. Heck, if you want, there's worse stories out there. Sweet Apple Massacre comes to mind, that's Big Macintosh doing far worse to the CMC, while they each watch, or there's that one about the Rainbow Factory, where we learn rainbows are made of ponies, mind the ending of that one is just creepy in ways that get under my skin.
BTW, from an author's perspective, while the guy does a good job of describing things, he's got a few things wrong too. The cutting, like he's doing, would be painful at first, but it would also be numb after only a few seconds, like when you could you finger, it stops hurting after a while, and won't hurt again for an hour or so, as adrenaline and blood loss numb the appendage. After I posted my topic asking for comms, this was actually one of my first assignments from an anonymous source, and one I won't post, to make Cupcakes better, basically, instead of blades, I used science! Electro Shock, Acids, and a bit of fire. Those will leave impressions for a while.
Anyway, while I understand the backlash, this has been on the net for a while, and anyone who hasn't seen it and is offended, well, this is what some people like, and I try not to judge. Besides, as an author, stories rarely get to me without a psycho element to them, like the Blogs of the Mane 6 getting mind raped by Discord, especially the epilogue one, which takes place after Discord won. Now that, my friends, is how you make creepy. Well, that and all the other stuff under the fan work tab on the nightmare fuel page on TVtropes.
http://tvtropes.org/pmwiki/pmwiki.php/N ... hipIsMagic