I have so much to say about this game, it was completely amazing. I love pixel art games, I like the twist at the end, I like the darkness in it. I like everything about it, keep up the great work.you got a follow from me.
I think the old lady died and bled out when her legs got cut off. But she was so determined to get revenge that her soul lingered on and she was zombified(hence why she is green now and wasn't in the flashbacks) until finally these people from her past walked in her old tavern and she got her revenge. I may just be overthinking this whole story but I couldn't stop thinking about how you could see her skeleton when she went down in the ship which obviously isn't a human thing that could happen. If you made it this far, please feel free to sub to my channel.
https://www.youtube.com/channel/UCaXblS2qbBcEt1EscKwwd6Q