J.D.
Around that age is when my daughter discovered automatic toilets. She was sitting on one when it flushed and sprayed her with water, plus it was SUPER loud. It's over a year later and she still asks if the toilet flushes automatically.
If you can determine if that's the fear, you can hold your hand in front of the sensor or you can put a post-it note on it. I know of a mom who carries them around anyway.
As for the sleeping thing, my experience is it's better to be firm and consistent, as hard as it may be. The phase will pass.
Good luck!
J.