While some mysteries are resolved near the beginning of ch.3
e.g true identity of young peasant, Walpole immediately introduces several new mystries to keep readers interested.

-Hippolita is rumoured to be dead

-Isabella is gone missing (again).

-Manfred's claim to Otranto is challenged
by the knight of the gigantic sabre.

-A hundred men carry in an enormous sword

-The giant sword falls to the ground on it's ow account.