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Update: I just tried the episode by itself (Game Select) and it worked. It looks like its a bug on Story Mode with the second episode and getting stuck under the bed with nothing happening.

I have the same issue on second episode. How long does this take? I tried waiting 15 minutes under the bed after the killer leaves and nothing happens. I also tried restarting the game and same thing. It seems like something is stuck. 

It works now. Thank you!

Myself and others appear to be having issues with the payment (just endlessly loads). My browser console shows this error when I click the PayPal button:

lib.js?1643436159:2 POST https://616games.itch.io/midnight-tales-vol1/purchase 500 (Internal Server Error)

I have the same issue here