As I mentioned at the beginning of the game, I've never read Discworld. Even so, I'm clearly missing a few things here...
By that reckoning, we shouldn't lynch Yunalesca, because as a foreigner she's almost certainly not Hippo League, but rather a Hippo League target.
What made you decide now that the Hippos are the enemy? They just lost this little skirmish in the event. If the Hippos were really a scum faction, I would have expected them all to fight the dwarves. On the other hand, since the townies are uncertain who the enemy is, I would expect our choices to be split. Personally, I chose option 2, Escape.
The Hippos could be scum, but this event makes that seem less likely to me, not more so. I'm curious as to why you think otherwise.
This is the big one... How do you know anything about Stephen's role?
My response was a calculated ploy that I thought would either catch you in a trap, or reveal something interesting about the nature of this game. I wasn't really confused until it failed to do either of those things.
Now I really must demand that you explain what you know about Stephen.