I am stuck there, too. After the villain (who I suspect is Scarecrow) mentions "fear" I am back in the apartment alone. I can click on the bed (which replenishes my energy tokens and nothing else) or click on the arrow, which leads to the bathroom or the door out, which takes me to the map with no other option than to go back to the apartment.
Any clues? If not I guess I am going to have to quit this one because, even though I know it is a trap, I hate brainless repetition and there appears to be nothing better to do than repeat.