That's what I took it to mean. After screaming, Lily was gasping for air, looked like, while pulling on her sweater near her throat.
Polly had just been standing there, it seems like. However, when the camera shows her, she is turning away, as Iris had mentioned she had started doing to Iris years before.
I don't know if Polly intended to kill Lily or not. If she did, why didn't she kill her long before then? Or did Polly just finally get around to facing Lily, as she had done years before with Iris? But Lily couldn't take it...the fright.
Why doesn't Lily then move on, instead of staying in the house? Lily says in narration that the ghost can leave, but chooses to stay near the body.
Significantly, while Lily the ghost comes down the stairs, Lily's body on the floor is shown to be rotting, with insects buzzing around, as Polly so often states throughout the movie. When Polly said earlier in the movie, "This is how you rot," referring to the flowers, was she talking about Lily's impending death? Or did she mean just generally, since the bodies of all of us rot?
I liked this movie a lot. A lot to think about, and more complicated with hidden meanings. Very interesting.
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