The Wolf Among Us - Episode 4: In Sheep's Clothing
I think I figured out how the murder in Room 207 went down. Lily was glamored to look like Snow, someone was glamored to look like Crane, they played out the scenario like they always did, and the ribbon was removed while she was on the bed. Beauty mentioned that she didn't hear or see anything suspicious. The blood trail stops at the door, and the Crooked Man has a Magic moving door. They dragged the body through the Magic Door which is why the blood stops there. It's possible the door has been used in other ways, for example they could have used it to get inside the business office at some point.