Nice entry! I like the art style a lot, however I found that the colors were incredibly distracting.
I like the way you told the story through the level design, but I found a lot of the execution lacking. In a trial-and-error based game, it's really frustrating to have to wait so long to respawn.
HOWEVER, I understand that this is part of the rhetoric of the experience. The frustration and visual dissonance creates the feelings of the character you are trying to portray, and I commmend you for being so ambitious in a ludum dare!
If anything, though, I personally think that subversion is the best vessel for this kind of mechanic-storytelling, so you should at least give the player something to rely on before pulling it out from under them. Bright white tiles that 'hide' the dark tiles that are the actual terrain is annoying if it happens from the start, but tricky when it happens later on. You explored this a bit with the 'find yourself level', which I liked, but I think we didn't get enough time with anything straight-fowrward to be able to see a 'descent' into madness. It's simply madness.
All in all, nice entry. Congrats!