About the fiesta patronal in San Juan de Oriente,
That's the papal flag they're waving. Their patron saint John the Baptist lost his head when Herod's step-daughter danced for the favor. (Is there an Ortegian connection here?)
Checking the web for a definition of 'chilillo' I found,
"m. Hond. y Nic. Látigo formado por una vara delgada o por una tira de cuero trenzada atada a un palo redondo y fino." from: http://palabrasyvidas.com/
A whip. No mention of using bull's penises, but that is a very creative part of Nicaragua.
That's where we get our word Verga-e-toro from. Some are twisted. We call Chilillo almost anything that resembles a whip basically made out of leather
Tapudo is used to refer to a gossip or big-mouth