They were lynching her literally because she was a dark-skinned elf (with no evidence of wrongdoing). In order to prevent her lynching, you have to murder a crowd of people and gain evil reputation. Then the "twist" is that their racism was completely justified and she deserved it.
Not a fan.
The while encounter is set up to make you think she is an innocent fair maiden victim of oppression who you can run in and rescue in your shining armour. The twist is that she ain't none and you were a fool, not a knight.
I mean it's fair if you prefer the old stereotypes and tropes to inversions of them. I can agree to disagree about that.