In order to complete this puzzle, you have to have completed the Barn Canvas Puzzle as it will give you the clue to the ribbon order. Note that in the painting in the barn, the flowers are facing outward, not towards you, so the ribbon order in the painting is backwards. Completing this puzzle will give you the Rose Light Bottle which is used in the Windmill.
Video of the puzzle & trophy can be seen here: Rabbit Puzzle on Youtube
Once you put the rabbits in their proper ribbon order (lines, diamonds, squares, circles), the flowers will bloom.
Crimson Red Trophy
To get the Crimson Red Trophy, once the flowers bloom, interact with the thorns to make Sarah bleed.
Rabbit Puzzle/Rose Light Bottle
After Sarah is done bleeding , you’ll need to use the scissors that are stuck in the flower box to cut them, but they’re old and broken. Take the scissors into the barn and put them in the Regeneration Circle that Grandma used to use. That will return them to new condition and allow you to use them to cut the vines.
Take the Rose Light Bottle from the flower.