Shelby Carpenter: I can afford a blemish on my character, but not on my clothes.
Waldo Lydecker killed Diane by accident, thinking that she was Laura. In his mind, if Laura could not be with him then anyone could have her, so with the help of the "twin clocks" he manages to hide a shotgun to kill Laura. Due to it being dark he could not see that it was really Diane. At the very end of the movie Waldo tries to kill the real Laura but is killed by a detective who accompanied McPherson to her apartment.
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