The horrific murder of the Emorys' youngest child Chester is what drove the family to escape the horrors of the Jim Crow Era South towards a new life in California. But with them came the same fears and doubts they had in North Carolina. Da Tap Dance Man (Jeremiah Birkett) represents Henry's feelings of helplessness to protect his family since his wife was attacked. Youngest daughter Gracie fears the severe Miss Vera (Dirk Rogers), a book character and manifestation of the child's growing anxieties. Teenager Ruby Lee is driven to self-harm by Doris (Sophie Guest), a white girl from her school who represents everything Ruby Lee thinks she'd rather be. The girls also fear their mother, who in turn is driven to self-doubt and the edge of madness by the Black Hat Man.
It's not until Lucky believes in herself that she is able to escape the oppressive asylum. Armed with the knowledge that the Black Hat Man is what is truly haunting them, Lucky returns to save her family. She's able to enter the others' supernatural realms because of her faith in her family's bond. Lucky saves Gracie from Miss Vera because she always believed Gracie, and she saves Ruby from hurting herself by reminding her she would never hurt her, unlike Doris. Lucky reaches her husband at his lowest point, reminding them of their family.
Henry breaks the hold Da Tap Dance Man has on him by shooting him and wiping away his makeup to show a white man. The reveal symbolizes that Da Tap Dance Man was another manifestation of the fears and doubts the family had to overcome. Nearly all the ghosts give small hints that they are all different forms of Hiram Epps, aka the Black Hat Man.
When Lucky faces down Hiram Epps, she's able to overcome his illusions by standing her ground. Lucky shouts the words, "I'm right here, I see you" in defiance of Hiram, which cripples him and forces him to face the unjust pain he inflicted upon the Black family in his town.