Weiss begins by pointing out how Crane used the stereotypical 1890's American West as his setting. The Swede comes to the Blues Hotel with the assumption that he will witness, if not be involved in, robberies and murders. The Swede was already experiencing inner fears about the West and when he was invited to join a friendly card game with Johnnie and the other customers of the Blue Hotel, his fears were heightened. When Scully calmed the Swede's nerves by giving him something to drink, the Swede undergoes a complete transformation and becomes what he considers to be a Westerner. The drinking, according to Weiss, returns the Swede to his original fears, but this time he isn't afraid, he is "cannibalistic", devouring his opponents and becoming very aggressive. He began "board-whacking" and eventually accused Johnnie of cheating. Weiss states that the card game was a "benign way for him to work off his aggressions harmlessly." However when Johnnie started cheating, the reality of crime and gambling set in and "the cheating restore[d] the game to the world of outlaws, professional gamblers, and gunmen." After the two fought and the Swede was triumphant, the Swede went on to the local saloon where he picked a fight and was killed by a professional gambler. The Swede was experiencing a high on power and liberation when he ordered the other men in the bar to drink with him. When he is stabbed, the Swede returns to his earlier disposition as a victim of the West.

Concerning "fear" in the story, Weiss says that "The Blue Hotel" deals with paranoid delusions. The Swede moves from "wary apprehension" to panic and "passive acceptance of annihilation", to becoming the aggressor and pursuer, then he regresses to being the pursued once again. He moves through these stages throughout the story and within the framework of the "game." Weiss writes that in order to avoid being hurt by his "pursuer", the Swede transforms himself into the pursuer. By moving from a panicked to a manic state, the Swede masters his feelings of self-esteem, alienation, and death. The Swede, upon coming to the small western town, was already psychotic and prejudiced and was searching for assurance against his fears. By accepting the drink that Scully offers, the Swede takes the place of his pursuers and becomes the aggressor. The fight between Johnnie and him is a manifestation of his new role. The fight with the gambler is an unintentional manifestation of this.

Daniel Weiss hypothesizes that Stephen Crane's "The Blue Hotel" is not only a short story, but is also a study of human behavior when under the influence of paranoid and fear. He writes about how Swede's inner fears become outward actions during the "game" and how his fears caused him to change character and move into a more comfortable role to deal with his fears.

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