Well, my theory is that the lewdity of this town actually came from another dimension, specifically the tentacle plains, brought by the cult-like activities from the ruins beneath the lake a long time ago. This is the former temple before it got relocated at Wolf street. The tentacles slipped into the area and the fluid secreted by them got absorbed by the environment, which lead to the origins of the ear slime at the landfill, the phallus plant at the moors and the lurkers. Of course, it also influenced the animals living there and the people.
The town and the moor was once a one big castle town. Couldn't fit in the sonorous bell though, but I got the feeling there's a dark being protecting most of the orphanage from the weirdness of the town, I mean, Bailey is afraid of the loft, there could be a reason why, and the fact that the orphanage is, correct me if I'm wrong, actually one of the oldest buildings in town.
The government actually don't want the general public to know a lot of the deep stuff going on, that's why they have the asylum in the first place.
Also, on the character viewer, there was a straw hat with a flower. This isn't implemented on the game yet unfortunately, correct me if I'm wrong. Good thing that the swim shirt finally got implemented though.
