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(2 edits)

I forgot to add a gameover to the graves... fuuuuuuuuuck though to be fair only one grave has the specific game over. Look for the grave of "Karen the know-it-all"

Edit:  "if you inspect the cage, you can find both party members in the cage (and outside!)" what did you mean by this?

Oh!  I meant.  

If the party is defeated by one of the surprise ghosts/shadows, you are still able to move around and even heal up.  You're just at 1hp with both party members.

However, if you go to the door with the pink cage symbol (where normally you would rescue a party member), "Peek into the cell?" means you see every CG, as if they were captured.