In the GM's eyes (I think), Lacy and Karen (who hid out all night) were the only survivors. Karen, who dodged most of the encounters with Otis, was traumatized but not destroyed. Lacy, on the other hand, lost all her campers, her friends, her semi-reconciled sister, her new and first boyfriend, and almost died while severely injuring or killing a child. She was ruined by the events at the camp. And all signs point to Otis surviving.
A second running theory is fairly similar to the first, except that in it, Lacy is so traumatized by the events at the camp that she becomes Otis, killing people to save the psychotic delusion of Flynn she believes is real.
The third theory, which I subscribe to because I always believe in the triumph of good over evil, is as follows. When the police reached Lacy, she managed to convince them to check on Flynn. They got a paramedic helicopter to him and managed to get him to the hospital. They found Otis's mask, but not his body.
Flynn was in the hospital for months and when she wasn't in school, Lacy was by his side. Aside from Karen, they were the only two who could understand what they'd been through, so they leaned heavily on one another, and eventually married. Years later, when the camp was foolishly re-re-opened, they visited to see if they could take down Otis once and for all.
A bit of commentary:
I really enjoyed Camp Grizzly, I think in large part due to the fact that we got a lot of interpersonal play out of it. Because the villain didn't show up till towards the end of the second session, we were all focused on what characters and NPCs we liked and didn't like. Because it was an 80's movie parody, we could all make pop culture references to amuse ourselves. It was a good balance and while my Agents of SHIELD game is going to jump straight into the action, my hope is we can do some of the same relationship building over sessions.