Chi Cai's claim wasn't entirely fabricated to stop the green-haired female player from harming the villagers; there is some logic to it. If one ignores the player's identity, only one person can die in the forest each day. Random killings could indeed make one a target, as it breaks the rules of the forest.
The instance's player count decreased from 42 to 35. It's uncertain whether these players were killed by other players or by the Hidden Friend. Today is the fifth day, and if we follow the rule of "one person dies per day," a new actor might appear today, or the Hidden Friend might continue killing.
Of course, this is a guess with very few clues and lacks a basis. The instance's direction will depend on what changes occur next.
