I believe I found out the reason Faith and Lilly were murdered. They weren't contributing enough. It's implied that a lot of Fabletown residents took out a debt due to their financial issues, however with Faith and Lilly they were working off their debt with"prostitution". So I would imagine they would have to bring back enough money each day in order to pay off a minimal amount of that debt each day.
Now Faith clearly didn't have enough money, even if Bigby gives her some it simply isn't enough however the prostitutes, such as Faith, Lilly, or Nerissa don't know what happens to them when they don't pay a minimal amount. So that's why they all seemed more annoyed when they don't have enough money rather than concerned.
There are two examples of this annoyance, one is when Faith checks the Woodsmans pockets only to find small change, she tosses it to the ground in anger. The second is when Bigby doesn't have enough to pay Nerissa and she looks at him, with a clearly annoyed expression before paying with (what I'm presuming) her own money.
Now if you investigate Cranes apartment in Episode Three he mentions how he cannot pay enough to the Crooked Man as he worries Snow will get suspicious and catch on to what he's doing. However we have no idea what other money he has, so we can presume with the money he's giving to the Crooked Man he didn't have enough to pay Lilly and he left her.
The only thing I find odd is why Lilly was murdered where she was, no one would come check for her pay right into their room, however maybe that's how they organize things.
Nevertheless perhaps they both had their ribbons removed because they simply didn't pay enough money. What do you guys think?