i have to assume thats how it went down since...Karen was entered into a mental institution.
I strongly disagree.
To say "Karen is in a mental institution because she said a doll is alive" is an entirely different statement than to say "Karen is in a mental institution because she murdered people."
The film only makes the first statement, not the second.
And she would have been - and was - put there simply for saying Chucky was alive. She need not have murdered anyone to have been put there.
Furthermore, Karen has a rock-solid alibi (working in a major department store) for when her friend was murdered. So
even if they did blame Karen for some of the murders,
then they'd still have to blame someone else for that one at least. And since they definitely blamed someone else, why would they bother to blame Karen too?
And on top of all of that,
if Karen was blamed for the murders, then the corporate lackey would have said so in the same scene that you are citing, because that would have 100% debunked the "Chucky is alive story" and therefore left his corporation entirely off the hook, which is exactly what he and his CEO wanted!
This point pretty much proves that Karen wasn't blamed for the murders.The film definitely committed a major fubar by not explaining who took the blame.
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