Final answer:
Pharoah is the character who hung a picture of Craig above his bed, which ended up haunting him and causing bad dreams.
Step-by-step explanation:
The character who hung a picture of Craig above his bed to grieve for him and found it haunting him and giving him bad dreams is Pharoah. This scenario shows how grief can infiltrate our subconscious and how the things we associate with lost loved ones can have a profound impact on our mental state, as seen in the quote provided which explores the vividness with which our dreams can affect our reality.