What would happen if the possessed state would be transferred, but all humans uses Hide?
If every human uses Hide, the possessed status can't get transferred as all potential targets are avoiding the effect.
Would it be possible to make it so the possessed player doesn't know they are possessed? Would the game be better or worse that way?
Me and Linkcat talked about this, and for now, the idea will be (possibly and marginally (?)) better if players DO know that they're possessed, so that they're put in a compromising position - if they manage to convince others that they're human, then obviously they wouldn't be shot/killed, as that would increase the chances of the cultist's winning. Otherwise, players who are bad at being possessed will get found out, killed, and thus end the game quickly. Since the cultists are the ones with a notable power of transferring the possession status, it's up to the possessed players to try to win as part of the cultist's team (even though they don't know who they are).
