Timeless Isle

Basically what I think MIGHT (MAYBE) would happen if a town on an island is suddenly stuck in a time loop with a single day repeating for the rest of time. The rules of looping apply on the town and everything outside changes so seasons and the world around changes except for the town stuck in time. I think it would be horrifying, like an cosmic entity tormenting them for no apparent reason and the people fighting for their sanity they once had.