Lilly Dies.
I think What happens here is she fell for the spirit\person\whatever it is speaking to her and let them into her head. They found her and well. Murdered her. It's cold but I think that's what it is. She never really got hypnotised, she just fell for it. And she tried to run away when she realised it. Lilly was warned by her loved ones to be careful in the woods. Maybe that's the reason that she grew up in castled walls?