Yes, the entire Zalgo meme is vaguely inspired by Lovecraft.
Try a book called "Random Acts of Senseless Violence" by Jack Womack. The text doesn't morph into gibberish, but the lead character transforms from entitled middle class to borderline psychopath street kid, and the way the language changes as the story progresses is _wonderful!_
Mark Z. Danielewski's House of Leaves
I definitely got HoL vibes reading the post.
William S. Burroughs
It reminded me mostly of the gibberish from the Cylon hybrids in Battlestar Galatica.
Robert Anton Wilson
Schrödinger's Cat trilogy especially
Hmm, Joyce's Finnegans Wake? You did say "probably back".