This was extremely solid. I felt like it was emphasizing some of the hints a little hard, but I'm the sort of reader who, the second the story mentioned a "random fact" about ants communicating with scent, said to myself, "Ah, obviously there's going to be an evil insect monster of some kind luring people with smells." I may read too much genre fiction.
The character voice was well structured, and the tone kept it interesting throughout. I particularly enjoyed the careful, almost lawyerly introduction of the Transgression that marks a character for death in Horror World. Top marks, would recommend to others, etc.