On the way back to town from the castle, Olivia hears cries for help coming from the forest. She finds Nene Oggton hanging upsidedown from a snare trap, but when she goes to cut her free a bag-net scoops up the Skeek as the otter acts as the counterweight.
It's clear that Gunther and the otter twins are behind it (since Olivia can hear them bickering outside the bag) and eventually she's released into a dark room with a bright shaft of light before being clamped into a chair. This, according to Gunther, is the Dungeon of Extreme Discomfort. He demands to know where Olivia 'hid the body'.
Eventually, Olivia finds out that Gunther is accusing her of having killed Liliana and hidden the body. Olivia tries to explain that she was looking into the bat's disappearance before being called to the castle, and that Djivan is out searching even now.
Gunther doesn't believe her, so brings out two giant feathers that he uses to tickle Olivia's very sensitive feet. This only gets the Skeek angrier and doesn't change her story. Even when Nene sits in her lap to 'ride' her as she wiggles and bucks from the tickling, Olivia doesn't crack which eventually convinces Gunther that she's telling the truth.
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