A is the villain and is trying to spell "sõbrad" by kidnapping the other letters. S is the hero. E owns the Faux-Letter machine, it's something that makes fake letters out of clay. O with a tilde is needed to spell Mook, which means sword in Estonian. F can actually turn into a car! Y is the planet though. P is sort of like a Q equivalent. There isn't any nightmare sequence though. The flashback will be VERY different. A would make a dunce cap on M, humilating him in the process. The word that A spells that gets her in trouble is "Ultra loll" which is "Ultra stupid" in Estonian. A with diacretics
Some of the characters are from @wario100's Hungarian lore.