The Double Twist
The film employs a devastating narrative misdirection. The audience is led to believe Dave might be Katie's killer because he returned home covered in blood the same night.
The Truth: Dave did not kill Katie. The blood on him was from a pedophile he beat to death in a parking lot, triggered by his own past trauma. Katie was actually killed by 'Silent Ray' Harris (a young boy) and his friend, essentially by accident/prank gone wrong.
The Tragedy: Jimmy kills Dave based on the false assumption that Dave killed Katie. Sean arrives the next morning to tell Jimmy they found the real killers, meaning Jimmy killed his childhood friend for nothing. The film ends with Jimmy getting away with Dave's murder, while Dave's wife is left without a husband, and the community moves on.