This story is told from the point of view of a first-person narrator. He is a textbook example of the "unreliable narrator," in that he begins by asserting his sanity, then goes on to prove he is in no way sane. This claustrophobic point of view, with no reference except for all the thoughts and ramblings of a madman, adds to the frenzied feeling of panic that builds steadily until his final climactic confession.
The story is physically set in the home that the narrator shares with the old man, mainly in the old man's bedroom. It is also set in the narrator's twisted mind, with a lot of action occurring in that small, cramped space.
Poe uses language; in this case the narrator's way of speaking, to expose his insanity......
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