Troubling Phenomena

There is much unsettling phenomena occuring in my sister's household, revolving around her daughter, and I think I might have a partial explanation to it, that only leads to more questions. I was hoping someone, somewhere could help me find answers and solutions to them.

My sister is raising her girlfriend's kids, willingly, and she adores them. The elder is 9 and the younger 6. The 9 year old is a habitual liar, cuts herself, and manipulates everyone around her. She's accused her biological father (who is, no doubt a scum bag) of horrible things, but untrue things. She went to therapy for it, but now she is accusing my sister; my sister who did nothing but feed her and love her when her biological father abandoned them.

Things have happened that are preventing my sister from getting her the psychiatric help she needs. But I think there is more to it than just mental issues.

Before most of this happened, after the accusations against the 9 y/o's father, I went to visit my sister and her family. Everything was great, they seemed peaceful enough.

While I was there, I slept in the 9 y/o's room (we'll call her Lina), while Lina slept in the same room as her younger sister. Now, I'm not trying to get horribly new agey on you - I'm agnostic, as logical as possible, but still somewhat spiritual. I'm also a lucid dreamer. Before this incident, I slept peacefully for 2 years without issue.
Within two nights of sleeping in that room, I had the most horrible nightmare that I've had since I was a child.
I attributed it to stress from the trip, and let it go. But I continued having nightmares all until I returned home.

I could not forget that horrible dream if I wanted to. And as the situation with my niece grew worse, I couldn't stop thinking about it. I talked to my sister today over the phone as she vented about the horrible things that are happening after her daughter's accusations - the family is tearing apart, the police are involved, etc.
I waited until she was done to try and bring up Lina's sleeping habits without sounding too absurd. I asked her if Lina had any nightmares, etc
As it so happens, Lina's been plagued not only with awful nightmares, but hallucinations. Again, she could be lying, but when I mentioned my nightmares, my sister realized that there was indeed a burgeoning trend of afflictions on her daughter.

I'm telling you all this because I'm hoping someone, somewhere out there, might have answers for me. A few things I've speculated about are possessions, eletrical interference, and my niece's energetic brain activity.
I'm only few minutes fresh to this site. I do not pretend to know anything about indigo children or lightworkers - I read very little about it when I was younger. But I was directed here from others on other sites and told someone here could help.

I just would hope for some plausible answers for my niece.

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