Three Theories

1. Daisy is an evil child with no superpowers- so shes just a sociopath, she did kill her brother and tried to get the little girl she was jealous of to drown etc.
Her motive is wanting her mom all to herself and wanting to hurt anyone in her way.
The other people then are making a mistake with the whole fairy thing and traumatized her even more instead of sending her to some institution etc.
They started genuinely fearing her on supernatural level and that also caused some weird events (like what her spit did to the man, the meningitis thing).
So, they fear her for legit reasons, but nothing paranormal. That would mean that in the end the baby will be ok, but maybe she drove the fathers insane with fear and so its still not sure what will happen.

Problem- the meningitis thing is just weird, so is the car accident and the spit.

2. Daisy is just a slightly autistic kid who was terribly abused and never loved, and made believe she was evil. Yea, she maybe got jealous on anybody who got Marthas attention and did go too far at some points, but she was just a little kid. Every element that isnt her doing is purely accidental and its crazy people who want to believe these events are her responsibility. Everything ends with a tragedy only cause of their fear and autosuggestion.
In this case ending has same implications as the first scenario.

Problem- same as the one in first scenario.

3. She is a fairy, has supernatural powers. She wanted the baby (probably Martha too, but she disappointed her in the end). The baby is now a fairy too.

or

all that stands, but baby isnt a fairy and her putting the blanket over dolls head saying "Now it cant breathe" or whatever is a type of a spell meaning baby is about to die.



I think 3rd scenario is most likely, specially the version where she just put spell on the baby to kill it (I just think she cared more about Martha then the baby). Second scenario is the most interesting one, but then its confusing why so many elements seemed obviously paranormal.




El sueño de la razón produce monstruos