There were two people other than Nate who would recognize Night's appearance, the feeling of fear, it was a cold tingling sensation at the bottom of their spine. Ajax and Ken, they witnessed Night take on the appearance of a shadow demon of some kind. Of course, whatever they saw was nothing but an illusion that their fear projected.
However, it was horribly scary to see something you fear, come to life. What were the chances that Night would actually take that form? of course, they were very low. If Nate hadn't pushed him so much then he probably would not have been required to go that far.