@temporary_user_name There are a number of rules about which nouns are more likely to get turned into verbs; H&P notes that morphological complexity plays some role here, but nothing that directly explains the dream/nightmare case.
@temporary_user_name Here is an example of verbing nightmare: "I had bad dreams last night. I was nightmared so hard I woke up in a sweat." In context, that is clear and understood by any but the dumbest or most literal listeners. Nevertheless, it's still not an "official" verb; it would require a lot of people to use it so that it is often heard.
In particular, there's a rule that nouns with suffixes (like -ness) almost never get turned into verbs. But nightmare isn't like that--it's a compound noun, and those can be converted to verbs like to blacklist.
@Robusto In that hypothetical sentence, "nightmared" is presumably really an adjective, not a verb, no? It's not a passive construction corresponding to "That dream nightmared me," which is far less acceptable.
Really it should take a content clause, like dream: "I nightmared that a monster was chasing me."
But others will have their own opinions. When someone in basketball is said to have "bricked" a shot, that communicates an image perfectly, which is why it has found its way into the vernacular.