My theory, is that the reason that they had the camera in the bathroom cut out during that scene is either because the filmmakers didn't want to show him actually cutting his own throat or he did something to make it appear that he died. I find it odd that he was able to leave a blood stain on the cabinet before he got into the tub to end his life. It also looked like, from the flashback, that he was filling up the tub before he tied up that guy like a pinata. If he is alive, he faked his death in order to move in the shadows. If everyone thinks he is dead, they will be more relaxed since they're just dealing with his niece. He has confidence in her to since he did train her the entire time she lived with him. He, obviously, knew that guy was working for someone, but maybe he kept him around as a witness. If he is dead, he didn't do it because he thought they had his niece. He would know if they took her and she would not have called him uncle if she was in trouble. Alive or dead, it's all part of his bigger plan, whatever that is.