The Repentance is brought about by failed Crimson Sacrifice rituals. In the Repentance, Darkness spewed forth from the Hellish Abyss deep within the village and engulfed the entire village in an endless night. During the Repentance, the vengeful spirit of Sae Kurosawa and the Kusabi returned from the depths of the Abyss, and brutally murdered all surviving villagers. Other villagers went mad from the Darkness.
Not only did every villager die during this, but the entire village was also erased from existance and thrown into an eternal time loop of the night before the Repentance occurred.
All those who pass the Twin Deities statue, the only remaining piece of the village, are spirited away to the village and trapped in the time loop as well until they themselves die there, usually at the hands of the spirits.