Red Room: When I came across this word, I delved into this for a rigorous research and found some facts about the Bloody Room. I have read many of the real life experiences (of those who been to Red Room) from Reddit and decided to spill out those points here:

Red Rooms are the live video streaming Onion or Shadow sites with the option of live IRC chats alongwith Bitcoin payment. Now, does that ring a bell for you? Still no, then now i can explain. You can call Red Rooms as Virtual Harassment Terminal which includes many of the world's heinous & blatant coercion is being executed lively as per the inflow of Bitcoins to the Organizers, as per the orders of members in the Live IRC Chats.

Explanation: When you login to a Red Room, you might see the Harassment Scenario (say a Blindfolded women is being tied to a rope with a chair). Once the Room (Chat/Red Room) gets locked ; there begins the Cruelty for Psychics. As the web cam will be placed for sure in the Crime Scenario; the actions will get reflected according to the chats in the IRC channel. Lets say a person say in chat : "Smash her stomach, i paid $200". Then the hooded figure who is in charge to harass that women will do the same to her, once the payment gets confirmed. By this, the fate of that women shall be decided by the Red Room members. It is not illegal to be into Red Room, but I will not suggest you to be there , as with your presence in RR makes it indirectly tailed up with a Public Virtual Crime. Red Room probably got its name from a Japanese Video Game (I guess but unsure).

Anyway, thank you for asking this, which also made me aware about 1 of the Darkest Cyber Corner among the millions.