Something must have been lost in translation, surely, as most of the characters in this film react in a way that is inconsistent to what people would do in a Western culture. You have a homeless person who acts all high and mighty when someone proposes shifty things for money, a medical student who is so annoying and arrogant yet no one kicks his ass, two women who just submit themselves when faced with minimal physical restraining and all kinds of extreme reactions to simple words uttered randomly by other people. One girl is practically raped as therapy (now you understand where the term comes from), then wound sucking and blood kissing followed.
The story itself combines the concept of homunculus with Jungian psychology, dodgy medical experiments that make no sense and parapsychology, but doesn't go anywhere.
There some interesting things in the plot, though. The idea that one particular trauma, that we probably don't (or won't) even remember defines so much of our persona that just nibbling away at it would unravel a person. They could have gone with that a lot, but instead the film wastes too much on exposition, then hurries over the interesting part, then ends in a convoluted and pointless ending. I understand it's an adaptation from a manga, but there is no rule that forces following it exactly.
Bottom line: a weird concept with some interesting details, but a poor cinematic implementation and I can only assume some bad translation as well.