"Paranoid" was originally written in September of 2019 and filmed the following October with Jordan Hancock and Ryan T. Johnson as the leads. The film was released online in November of 2019 before it was pulled off the channel a year later when writers Joel Green and Rene Garcia decided to remake the film with new actors and a new setting, feeling that the original version was rushed. Rene and Joel re-wrote the film with "Katie" and "Clark" being stalked in a large house-setting, as opposed to the park. Filming took place in April of 2021. With only half of the film having been shot, Rene then thought of an idea of bridging the original short film with the new one. He created the character of "Luke Abernathy" as a way to bridge the two stories together and incorporated the use of parallel dimensions. The original short film would then act as the opening sequence to the brand new "Paranoid" short film and would follow Luke trying to learn what happened to his sister. Meanwhile, the "newer" versions of Katie and Clark would have the same events happen to them but taking place in an alternate reality.
"Paranoid" was originally meant to be a self-aware, comedic horror. After the rewrites, the film adapted a more serious tone with some brief comedic elements still left intact, mostly with the two Clarks in the film. Joel Green later said he was happy they turned "Paranoid" into a more serious film than originally planned.
According to Joel Green, "Paranoid" acts as the first installment in the "Middletown" universe, an episodic media project which will be expanded upon in the years to come.
"Paranoid" was first inspired while co-writer and producer Joel Green was walking around Bethany Lakes Park in his hometown for photography assignments. Night would fall, and he had the idea of a protagonist washing their hands at the bathroom and seeing a face in the mirror, which only reflected the darkness at night. This inspired the scene where PRIME KATIE is attacked by the Demon in the bathroom.
Despite getting third billing, this is technically Hunter Peacher's third leading role in a major Renefilms Productions project, following "First Strain (2020)" and "Revenge, Synth, and Androids" (2024). However, "Paranoid" was released in January 2022, while "Revenge, Synth, & Androids" is slated for 2024. Hunter Peacher was also the lead in the Renefilms Production short film, "Monolith" but it only has a runtime of 3 minutes so it is not considered a major project.