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"The Unseen Observer" follows Kinoshita Kayo, an unremarkable Japanese high school student with a fascination for the supernatural. Living in historic Kamakura, Kayo moves through life largely unnoticed, finding his only passion in paranormal phenomena. His ordinary existence changes dramatically when he discovers a disturbing video featuring an entity he names "The Smiler" - a humanoid figure made of darkness with an impossibly wide, bleeding smile.