The characters known as Jellyfish are NPCs that can be found in the dense woods, and also make an appearance during the credits in the final scene of the game.
They are red and maroon in color and resemble jellyfish or weeping flower buds. Jellyfish have no humanoid characteristics other than the two squat legs visible from below the petal-like frill.
When interacted with, the frill shuffles from side to side and it produces a series of chimes like a bell. This triggers paraphysical events such as teleportation or twisted dimensions.
Jellyfish do not move or animate when idle, and show no response to any of Madotsuki's effects, including the knife and cat, which is very unusual for NPCs.
Warning: Game spoiler details follow
Interpretation
Jellyfish are strange characters that provoke a lot of questions. Their lack of expression and strange behaviour make them very mysterious characters.
Most notably, despite being surreal creatures exclusive to Madotsuki's dreams, they appear in the real world after she jumps from her balcony. This may indicate that what was apparently the 'real world' was nothing more than another layer of Madotsuki's dreams, or may suggest that they were supernatural entities that always existed outside of Madotsuki's dreams and guided the events of the game from the beginning.
They are also the only NPC character (other than Uboa and the Toriningen) to be immune to the knife effect. This implies that they represent a very powerful force in Madotsuki's psyche on par with these other major characters, yet unlike Uboa and the Toriningen, Jellyfish show no obvious signs of hostility. This trait may also tie in to the theory of them being supernatural or deific figures.
It has been suggested that Jellyfish are actually modelled after the lotus flower. In Japanese culture (including Buddhist symbolism), the lotus flower represents purity, divinity and spiritual awakening. This may be a metaphor for Madotsuki's suicide being a transcendence from her disturbed life into a state of 'nirvana' and peace.