I think the answer is it's mod discretion:
A mod can determine they're killed off by the Mafia going out in the open.
A mod can determine they are 'alive' but losers. I see nothing wrong with this, because a players alive or dead status has no impact at the conclusion of the game. I personally prefer the assumption they're alive, especially when the mod then goes on to create a sequel and reuses the 'alive' 'town players' to go on to play another mafia-game in a series! But that's just my personal preference, I don't think there's a wrong answer.
Are endgamed players dead
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