Peter Tscherasky used a technique called Cinemascope when filming Outer Space (1999). Cinemascope involves using a special lens that compresses the image, then uses projection to widen the image. He uses other collage techniques to alter the live action film, The Entity directed by Sidney J. Furer.
Outer Space is a live action horror film obscured by a black hazy matt that has holes in it to control our vision of the scene. While the glimpses of her indicate her increasing terror through the expressions we are able to see, it is not completely obvious, without a doubt, what kind of film it is. And I seem to need that confirmation, during several moments. So when the woman’s face is fragmented in post production, and the film takes on more distortion, the narration seems to hasten. The quickening of the pace felt through the effects tells more about the horror the woman experiences than what we are able to see of the underlying film.
Because of the duplication and fragmenting of her image, it is not certain that the effects themselves are not the monster she fears. Yet, we also know from experience that we are watching found footage, that is mostly likely horror.
The film is in black and white giving a noir appearance. Already at the start of the film the black haze that only reveals parts of her face, hands, and environment, builds a tension because it plays with curiosity, persistence, suspense, and tension.
I would say that this is a perfect technique for creating tension and working with horror.