To dream of being blackmailed represents a situation in your life where you feel you are at the mercy of a negative situation or someone else’s bad intentions. A constant threat of loss or failure if negativity isn’t respected. An ultimatum. You may also feel that if you don’t keep doing something you may lose something important to you. Fearing negativity or embarrassment from your past coming back to haunt you and/or desperation to prevent it.
To dream that you are blackmailing someone represents an ultimatum you are making for someone else. You may be planning to cancel or stop something if certain conditions aren’t maintained. It may also reflect issues with power and domination. You may be overly competitive. Exploitation of others past or secrets.