Alice eventually realizes that Dr. Bumby molested and murdered Lizzie, then set the Liddell home on fire to cover his tracks. His hypnotic "treatments" were actually attempts to erase Alice's memories of his crimes so he could exploit her and other orphans for profit.
Years after the fire that killed her parents and older sister, Lizzie, 19-year-old Alice is released from Rutledge Asylum. She lives at the Houndsditch Home for Wayward Youth under the care of , a psychiatrist who uses hypnosis to help his patients "forget" traumatic memories. Despite his treatments, Alice suffers from recurring hallucinations of a decaying Wonderland, which is now being torn apart by a colossal, mechanical Infernal Train . Journey Through a Broken Wonderland
Alice: Madness Returns is a psychological horror sequel that follows Alice Liddell as she navigates 1875 Victorian London and a fractured Wonderland to uncover the truth behind her family's death. Released in 2011, the story explores heavy themes of trauma, repressed memories, and institutional abuse.
Urged by the , Alice re-enters Wonderland to find the source of its corruption, which she soon learns is tied to her own repressed memories. As she travels through various domains—ranging from the industrial factory of the Mad Hatter to the oriental-inspired Caterpillar's grove—she recovers fragments of the night of the fire:
As Alice leaves the station, she finds her perception of reality and Wonderland have fused into a hybrid world often called . While she may never truly "go home" or be the person she was before the fire, she has finally mastered both her mind and the external threat, finding a hard-won sense of peace.
Alice destroys the Dollmaker, symbolizing her triumph over Bumby's psychological control.
She discovers that Dr. Bumby was an acquaintance of her father who had a predatory interest in her sister, Lizzie. The Truth and Revenge
Alice previously believed the family cat, Dinah, started the fire by knocking over a lamp.