Psychologically:
Actions in this dream indicate aggressive feelings. For the correct interpretation of dream, every detail must be calculated: the people and things involved in this process are important. In the old fairy tale these dreams were often used as symbols for sacrifice and resurrection. Osiris was the first example, dismembered and then recreated. In the dream, these images can be interpreted as evidence of decisive personality development of the dreamer.
* Please, see also dreams about knife, scissors, cut.
I was in my bed asleep and could NOT move. It was like I was awake. & someone behind me was shredding paper. I could hear it ripping over and over again, like slowly in half slowly. It was so real. So scary.