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Factual error: The damage done by the hobgoblin-induced fantasies is real, as seen several times in the movie. Kyle's car runs off a cliff, Nick's grenades really explode, etc. Nick is in one scene set ablaze by throwing himself on a grenade, and is completely engulfed in flames from his head to his toes. But he shows up in the last scene with nothing but a few minor burns on his forearms and a pair of crutches (that he immediately discards). His hair and eyelashes are not even singed.

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Plot hole: One of the hobgoblins honks a horn, imitating the distinct sound of Nick's car horn, to draw Daphne out of the house. But the hobgoblins have never met neither Nick nor Daphne; they would have no idea what his car horn sounds like.

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Plot hole: After Dennis (the first guard assistant) gets killed, the vault is open for several minutes before the old guard arrives. The hobgoblins, however, do not run for their freedom, but patiently wait until the hero, Kevin, comes in a later scene and opens the door. Then they escape as quickly as they can.

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Plot hole: The hobgoblins are locked in a security vault to ensure they never escape and kill people. In addition to the heavy vault door, there are two steel bar doors and an additional door up the corridor protecting the vault. None of these doors are ever locked, even after the first security guard walks in and gets killed. Even the burglar walks straight through these doors, so that Kevin has to follow him and let the hobgoblins out.

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Revealing mistake: When Pixie is using a bottle to beat up the MC at Club Scum, you can see that not a single one of her blows actually hit him. In fact, they miss by several inches. The MC, of course, groans in pain and reacts as though he's been hit every time.

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