Thanks for the report, Gollum!
Unfortunately, without a game number, it's hard to verify this report. I just played a 3 player game with Fortune Teller, and each player played it and it affected each other player, just as it is supposed to.
Could your player 2 have had a Moat, Lighthouse, Champion or similar effect that protects them?
Also note that if player 3 plays Fortune Teller and player 1 and 2 then put a Victory or Curse card on top of their respective decks, if then player 1 plays a Fortune Teller as well, player 2 will just reveal the Victory/Curse on top of their deck and put it back. So from that point of view it doesn't affect them again, but it is noted in the log anyway.
A third possibility is that if a player has no Victory cards in their deck and discard pile (maybe be they trashed all, or have them in their hand), the player reveals and discards all their deck and discard pile contents, then simply discards all without putting any card on their deck.