Hello! I just tested the scene and that may have happened if you inspected the fountain with the orange water further after taking paper scrap #5. After you take the paper scrap you're supposed to leave immediately or you'll be stuck in a 'loop'. Afterwards, the game should progress and allow you to leave.
Another scenario could be that after picking up the axe there are four options to cut down the 'hanged man'. The fourth is blank and the only one that will allow you to progress. Sorry for the confusion!! ^^;