Blood Skelter Mode Mechanic Explanation

So it's confirmed. Blood Skelter mode works exactly like in the first game, they discover it by coincidence when Little Mermaid goes in that mode and start attacking Otsuu and Hameln. She is reverted by Jack's blood that was splattered on her when he protected Otsuu from being hurt. I guess that's why they had Jack transform as a nightmare, if he was a human he would jeopardize the protagonist role of Otsuu, but he has to be around the group because the key mechanic of the game goes through him.

Now my thoughts go to Alice because she went Blood Skelter too earlier in the game before the group separated, is she still in that mode clashing around somewhere in the dungeon? Surely nothing bad can have happened to her right?

Now let's continue exploring the aquarium area, it's apparently the area from which Little Mermaid appeared so I wonder if it'll be just another tutorial explaining how to defeat the Nightmares and they'll leave new characters to a future zone...