Okay, just finished reading it. I have to say, that was pretty stupid. I laughed a little at the scene with the puns (I guess I wasn't expecting puns in this story lol), but mostly it was boring. Not well written at all, really short, and there was just enough characterization to make you realize that these ponies have completely different personalities than the ones they're supposed to be based on. Nothing about what Pinkie is doing is explained, although it is hinted at somewhat and that just raises more questions, but while that sort of writing is usually great for horror, here it just makes the whole thing even more annoying. Also, during the first part (after the thing actually starts, before that the entire situation is just plain awkward) there is a tiny bit of anxiety for the characters, but then suddenly the pacing blows up and kills any suspense there may have been, though of course the puns may have had something to do with it as well. There were a few potentially interesting ideas that weren't expanded upon in the slightest. It's a half-ass job on a fanfic from a half-ass genre.
I don't know, maybe I've just seen too much of this kind of thing to care anymore. Maybe I've engrossed myself in horror media and creepypastas for too long. But Cupcakes isn't disturbing, it's too badly written to properly disturb someone. What this is, is disgusting. Disgusting is the feeling you get when something smells really bad. Just like being scared is not the same thing as being startled, there's a difference between something being sick and something being truly disturbing. For this to be disturbing in the slightest, we would need to be able to empathize with Dash. There is another one like this, but with humans and much better writing. I can't seem to find it, but it happens in a hospital. The guy goes in for surgery, and this happens to him instead. No reason is given, or anything. I can empathize with that, and I'm going to remember it and get freaked the fuck out whenever I have to go in for surgery in the future. But Cupcakes has no place in my existence, so it doesn't scare me or disturb me.
There is a fanfic that disturbed me when I read it, and it still disturbs me to this day.
The Terrible Secret of Animal Crossing [http://lparchive.org/Animal-Crossing/Update%201/]
Haven't read it in years, so it's probably not as bad as I remember it. Not too well written. Kinda stupid. But holy fuck I will never ever look at Tom Nook or those fucking dancing fire hydrants the same way ever again. That is what being disturbed is all about. This shit sticks with me. Cupcakes, on the other hand ... I've already forgotten what it was about, honestly