I second that, I saw the shadows coming but the characters seems slow to react and swings the torch way too late. In the end I just didn't try to kill them and just ran away.
That said the atmosphere is deliciously creepy! Well done.
It seems the issue may stem more from a lack of clarity on mechanics. With the Wraiths you dont have to hit them, just shine your light in their direction. This will cause them to flee.
Hindsight 20/20: A tutorial level would have been very beneficial in explaining the mechanics.
Oh, indeed that totally escaped me. I'll give it another try tonight! If you can't do a tutorial level in time, a few paragraphs on the game's page would be enough I think.