See I was already not planning to keep watching this train-wreck but now you're making me morbidly curious to see it just for this prediction
Ep 3 is clearly meant to be 'unreliable narrator' view point - ie. we'll find out what 'really' happened later (or what Jedi think really happened at least).
With that said - I'm about 89% certain at this point that one of the witches mind controlled 1-3 Jedi(s) to murder everyone, and then eventually got killed by The Squid Game herself. It would slot neatly with what the authors think is 'clever twist', explain why one of the twins thinks Jedi pull sabers only to kill - and the Jedi would feel responsible for what they've done (and the subsequent cover-up) and the chekov's mind control has been prominently featured in first 3 episodes so it's
GOING to be a plot-thing even if my prediction turns out wrong.
Now the best part of this is that my story still works with Madflavor's ending - I fully expect two plot threads to be disconnected based on general Disney Wars writer competency - so yea - we're probably both right.