Gardai fear a surge in tit-for-tat assaults in Letterkenny amongst those involved in the drug trade in the town.
It follows the posting of a serious of threatening videos on social media.
It also centres around an incident at the Courtyard Shopping Centre on Saturday afternoon when a man produced a knife and attempted to stab another man.
One man had to receive hospital treatment as a result of the terrifying incident.
In another video a man is seen chasing a man around a car on the town’s Main Street threatening to assault him.
In a later video a man whose face was covered in blood claimed he was assaulted by members of a Letterkenny-based family.
He then threatens revenge on those he claims attacked him.
The threats and assaults signal a marked increase in violence in the town in recent weeks.
A source said Gardai are monitoring the situation closely.
He said “They (Gardai) are very aware of these videos and the threats being made. They are also aware of a number of assaults and threats.
“The situation is being monitored to make sure that it does not get out of control.
“It’s a serious situation already and the production of weapons is a serious step up from just threats being made.
“It is being monitored closely and the relevant action will be taken where necessary.”