Continuity mistake: The scene in the Obi Wan nightclub when Indiana runs out of the window with Willie Scott. Indiana is running behind the gong and we see him collect Willie. In the next shot seen from behind the gong Indiana has yet to reach Willie before they jump out of the window.
Continuity mistake: During the palace dinner scene, the "snake surprise" is laid down at Willie's left side. A few shots later it's on her right.
Chosen answer: His neck was snapped by the whip getting caught in the fan. There isn't always blood with a hanging. Since the fan wasn't designed to hold a man's weight, the motor in it would have stopped or given out.
Captain Defenestrator