It is canon that she messes with people's unconsciousness. She's capable of erasing tthe memories that's filled with her in other humans, making her forgotten. However, it's not explicitly mentioned why she is doing this.
She's doing this because of her backstory. She's afraid of being hated if she was remembered by people, especially children. She doesn't want her traumatic past to come back and haunt her again. She didn't want to suffer the same horrible fate as Satori.
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Touhou Headcanons!
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