ToME: the Tales of Maj'Eyal

Anmalice still has this weird effect where even when you are no longer using it or even carrying it, if you are in a place where you held it once (like a town), it will occasionally debuff you. I just got "Anmalice focuses it's mind-piercing gaze upon you" and became stunned by the gloom, in Sunwall. And Anmalice is sitting in my storage room.

Edit: I'm getting the same thing in Briagh's Lair, where I had not been prior to dropping Anmalice. And it's targeting other things too..

Uh oh.. Anmalice has wrapped its tentacles around your brain making you lose your mind.