There are two doses of the fetal position this season, and both of them are pretty disturbing to see.
I did some research into the symbolism of the fetal position, expecting some great literary insights. Instead, I got TVtropes, which lacks sources, and I feel as I have failed as a researcher, as this was best I could do.
But what is said there fits. Take the fetal position rebirth and Fractale. The fetal position is a visual symbol used to illustrate a rebirth or major upheaval for the character in the nude. For Fractle, Nessa has been hinted as a key component in the Fractale system, and right now the Fractale system is in the process of being ovethrown. With the type of show Fractale it is, the characters may fail to overthrow the system, but it is going to be reborn into something new, something better. Either that, or have some “we’re all doomed” ending.
Madoka is definitely experiencing…major change in her life. To what extent, we don’t know yet. However, it’s may be her fetal position refers to another fetal position trope on TV Tropes–the troubled fetal position. When a character has been through something very traumatic that they just can’t cope anymore. Madoka has every right to be past that point for awhile now.
But she’s being seen. By something. An eyeball. She’s been picked by something. Whatever spit out Kyubei. And it’s going to remake her. Innocent naaive untouched pure her. Into a Mahou Shoujo. I think it’s more likely this is another case of fetal position rebirth.
As a side note, if you sleep in the fetal position, it means you’re more sensitive and shy. That’s how I sleep. Go figure.