Step 2

From here on out, we don't know who to trust, but we do know that 2 liars can't 'see' each other.

 

Case: Mr. Fussy liar

If Mr. Fussy is a liar, then

1. Mr. Silly is NOT alive.

2. Mr. Dizzy is NOT a liar, so Mr. Silly and Mr. Small ARE alive.

Contradiction, so this cannot be the case.

 

Same logic applies to Mr. Dizzy being a liar. Therefore Mr. Fussy and Mr. Dizzy are telling the truth.

We can't make any assumptions about Mr. Snow telling the truth, though.

Done