Its sad but true.
A more appropriate Chaos Effect might be to have all attacks taken from inside the zone target a random creature within reach/range, you could also include the person making the attack as a valid target for the hilarious sight of people attacking themselves.
Or have the effect take on a Clusoe-esque quality. Every missed attack roll actually causes a chain reaction of some kind that ends up striking the original target. You swing with all your might and strike the adjacent wall, which causes a tremor in the dungeon's structure and a large stone falls from the ceiling and strikes the target on the head.
Even if everyone tries roll low and hold their weapons backwards, you know they'll never be able to roll low when they want to. That was the whole basis of AD&D and I could never get the dice to go the way I wanted to.

But there is the mechanical matter of having your missed attacks more likely to strike your target than not. If the target has an AC of 17, you only have a 1 in 5 chance to hit (without modifiers). With this effect, it becomes 4 in 5. The odds even out a little bit at higher levels and such, but this is just to demonstrate a point. I think having this terrain set at high heroic levels (7-9) should even it out somewhat.
Saving throws could easily work this way - you just need to roll 10 or less.
But for a casual exercise, I still get a kick out of watching players intentionally try to screw up in combat.
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