I just realized this thread existed! Maybe this is more relevant here.
Just watched it again, a few more observations/thoughts. There was not blood currently coming from his nose. He has what looks like a makeshift patched hole in his cheek that is both bloody and appears to be leaking blood. Blood is coming out of his mouth. If he has been in jail a couple days considered "drunk" while he is supposed to be sobering up, his nose could have stopped bleeding. Chad calls the place a "fucking nuthouse" which the drunk repeats. Later in The Roadhouse one of the girls says "...Thats because your hanging out at the nuthouse...don't go in that nut place." Maybe it's a coincidence??? Also, the young woman describes seeing Billy as "so fucking scary....he had this look in his eyes...I started screaming...bloods gushing out like a waterfall...he looks and turns at us real strange..." In my interpretation, like the way the liquid was "water-falling" from the drunks mouth. Anyway, just some observations. You never know...but the nut house are references are making me think about Audreys predicament, and that she could possibly be in some sort of rehab.