Glad to hear you've been having fun with it :3 Hopefully you enjoyed the rest if you finished playing it :D Thanks so much for checking it out <3
SPOILERS
I don't think I answered that exact question, but my answer is probably not gonna be super helpful >.< cos the reality of that particular situation depends on what you choose to believe, and also whether or not you've seen the 'true' ending as well x3
Sooo, the implication is that Blythe turned everyone in the park into bunnies first as you say, and then to balloons. Bunnie sort of just presumes it's like a fancy illusion, and so Blythe is able to shrug the screaming off as being trick balloons, buuuut, as you see in the CG if you keep playing the balloon game, they're not trick balloons, the screams are genuine screams from the people in the park because Bunnie is running around jabbing/stabbing people, completely oblivious xD So I suppose, in a sense, every balloon is a trick, but the trick is that there were never any balloons in the first place x3 Blythe just manipulated Bunnie's senses to make the people in the park look like balloons, and then sent Bunnie on a killing spree just so they really could have the park to themselves, but without causing Bunnie any stress because it was just presented in the format of a game, haha.
Whether or not you believe any of that after seeing the Bliss ending is up to you though :3