Sounds like something from a Jethro Tull song. What a freak.
: )
Its pretty common Filipino superstition, in a superstitious nation. The "dwendes" are standard parts of that - these are not like Disney's seven dwarves. Consider them rather like animist nature spirits, associated with certain trees or other mystical places.
This sort of thing is also common in Japan (though they may believe it less). See Miyazakis movies for a full suite of animist folklore. Filipino folklore is no less rich.
I've had people tell me that they were cursed because theyed had a bad dream, all kinds of other things. Much less common in the city and among the educated, but you can never know.
I was thinking of