Here's the Form of Madness I wrote up - thoughts?
Form of Madness: A creature within 120 feet that observes Garamorosh must must attempt a DC 34 Will save. Failure indicates the creature's mind is scarred by the endless writhing of Garamorosh's body, and sees an echo of such in the movements of water henceforth. The victim automatically becomes shaken whenever they are within 30 feet of liquid of any kind not hidden within a closed container, and hallucinates tiny tentacles reaching towards them from beneath its surface. If the body of liquid is large enough to contain a Gargantuan creature, the victim is instead automatically panicked for as long as the liquid remains in view. Against a water elemental or any creature with the Ooze type, the victim suffers a -4 penalty on attack and damage rolls. A heal or greater restoration can cure the effects if the caster makes a DC 30 caster level check. Miracle or wish automatically cures the condition. A creature that makes this save is immune to Garamorosh's form of madness for 24 hours. This is a mind-affecting ability that does not affect chaotic evil outsiders. The save DC is Charisma-based.