Neutral
Treachery. Weakness

Madness.

Revelation - Exhaust all assets you control and put Wracked by Nightmares into play in your threat area.

Assets you control cannot ready.

: Discard Wracked by Nightmares.

Colin Boyer
The Dunwich Legacy #15.
Wracked by Nightmares
FAQs (taken from the official FAQ or FFG's responses to the official rules question form)
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I think the FAQ

Any investigator at the same location as "Ashcan" Pete with Wracked by Nightmares in his threat area may trigger the to discard it, as per the FAQ [V1.0, section 2.1].

Is wrong, first it's section 1.2 in the newly released FAQ (V1.2), and it does state

An investigator is permitted to use triggered abilities ( , , and abilities) from the following sources:

  • Any card that explicitly allows the investigator to activate its ability.

which it does not since Wracked by Nightmares reads

: Discard Wracked by Nightmare

and further

  • A scenario card that is in play and at the same location as the investigator. is includes the location itself, encounter cards placed at that location, and all encounter cards in the threat area of any investigator at that location.

which also does not apply here, since this is not an encounter card.

But... this is an encounter card; specifically a Treachery. Weaknesses in player decks are not investigator cards, even though they start in your deck. — SGPrometheus · 167
Also every weakness that has a similar effect works this way — SGPrometheus · 167
You missed something... The same section states: A scenario card that is in play and at the same location as the investigator. This includes the location itself, encounter cards placed at that location, and all encounter cards in the threat area of any investigator at that location. — KptMarchewa · 1
Ok, sorry, I got it. Two points from Weakness section: — KptMarchewa · 1
"When an investigator draws a weakness with an encounter cardtype (for example, an enemy or a treachery weakness), resolve that card as if it were just drawn from the encounter deck." and "Weaknesses with an encounter cardtype are, like other encounter cards, not controlled by any player. Weaknesses with a player cardtype are controlled by their bearer." It follows that weakness cards should be treated as a encounter card. — KptMarchewa · 1
Noticed another interesting point of view. "A SCENARIO CARD that is in play and at the same location as the investigator". Scenario card is not defined by rulebook. So, if this weakness is not treated as encounter card, not a scenario card and not controlled by any player, then there is no rule that allows us to activate this cards ability. Weakness paradox :) — KptMarchewa · 1