Factual error: In the flashback, when Teddy was among the soldiers liberating Dachau, there is a semi-circular sign above the gate that says "Arbeit Macht Frei". Dachau had a sign with those words on it, but its sign was oblong. The sign at Auschwitz was that shape.
Factual error: When U.S. troops arrive at the concentration camp, they are wearing M1941 Field Packs. These were developed by the United States Marine Corps and were only used by Marines, not the Army. The standard pack systems used by the Army would've been the M1928 Haversack or M1936 "Musette" Bag.
Factual error: The movie is set in 1954, but the pinball machine named 'Seven Seas' in the staff rec area was not actually released until 1959 - even the metal legs on Gottlieb machines would not be introduced until 1957.
Factual error: Two characters discuss a recording of Mahler's quartet for piano and strings in a minor. The manuscript for this adolescent piece was discovered by his widow, Alma, in the 1960s. Difficult to accept that there was a recording available in 1954 when the movie was set.
Chosen answer: I think the recurring blood comes from the blood of his wife when he killed her. there was a lot of blood you see, in his psychosis that means a lot and has taken over a large part of his hallucinations, just like Dachau camp. Yes, he did shoot his wife Dolores, in the belly. You can see it in the end of the movie.
lionhead