I like the way you think.

But no nothing that interesting, lol. This creature was the end result of a psychic inadvertently atomizing his home town, essentially. But upon doing also copied all the memories and psyches of people and animals, melding everything, including himself, into an interdimensional soup. That soup eventually formed into an entity. The Dreamscaper is a portion of the whole entity, however the other portions of it cannot exist at the same time in the same space. They're kind of like a revolving door, woven through different realities simultaneously, when one portion moves out of a "reality" another must come through in it's place. The Dreamscaper is the mad creator, trying to remake the town from a chaotic maelstrom of thoughts and memories, but is incapable fully shaping things accurately, nor is it really capable of coherent thought. When it disappears in its place comes the Dreamripper. This portion is the mad destroyer, everything the Scaper made is completely and utterly leveled. Rinse, repeat, forever.