Melkor - Redirected to Player X, Player X targets Ratchet.
Would be possible if anyone targetted Ratchet previous night. I doubt they redirect Melkor to one of theirs. Unless they thought he was the Vig and sent him to Alco who checked Ratchet.
I do think a Redirect is the only plausible solution here for Ratchet to even be Town given I think Melkor's info isn't faked. And then Alco getting killed doesn't make much sense. If they think Melkor is the Vig, surely they don't just additionally FK him?