Just as the group had affixed Redbrand cloaks to themselves, Tulinthel vanished in a flash of white-gold light. Unperturbed, the party continued to explore the Redbrand Hideout. Passing through a skeleton-filled room, opened a door to a cell-block. In one cell were two naked figures: a dwarf barbarian the party recognized as their friend K'lika'qualkua Kuna, and a human fighter boasting a comically large wang. In the other cell was a 40 year-old human woman and her two children.
After taking out the guards, human fighter introduced himself as Felati McGirth and explained that he had once been a traveling companion of Lucinda Albrite and Sildar Hallwinter. Sildar had recently lured him, Lucinda, and K'lika'qualkua into a trap, resulting in the death of Lucinda and capture of Sildar and K'lika'qualkua by bandits. The woman in the other cell introduced herself as Mirna Dendrar, and told the party that while she had nothing to offer them at that time, they could find a valuable emerald necklace buried in the ruins of her family's herb and alchemy shop in Thundertree. La'thum escorted the small family out, then returned to continue exploring the hideout.
The paladin sensed evil coming from behind a slightly ajar door. Upon investigation, he saw a small, pitiful goblin being harassed and mocked by three large bugbears. The party attempted to sneak past the room, but the bugbears heard them and engaged the party. The goblin fainted the moment swords were drawn.
After handily defeating the 3 bugbears, the party investigated the goblin. Balmore was about to slit the goblin's throat with his knife when the goblin woke up and expressed gratitude to the party for saving him. La'Thum, determining that the goblin was being sincere, decided to dub the goblin "Dobby" and recruit him as his personal squire. They then exited the hideout.
Back at the Alderleaf household, Quelline revealed that she had seen a man matching Sildar's description making a scene at the Townmaster's Hall. Felati stormed over and angrily confronted a confused Sildar over the death of Lucinda, but the toothless man protested his innocence. After a convincing explanation, in which Sildar hypothesized that a Doppelganger may have intentionally tricked him, Felati decided to stay and keep an eye on Sildar (who had kicked out the previous townmaster and, through the Lord's Alliance, would now be overseeing the town). After hearing that Glasstaff was really his old friend Iarno Albrek and had escaped, Sildar implored the party to go to Cragmaw Castle, kill King Grol, find Gundren Rockseeker, investigate the mysterious Black Spider figure who seemed to be pulling the strings, and bring Iarno to justice.
As the party was leaving, they noticed a poster hanging outside the Townmaster's Hall, listing a reward for taking care of the band of orcs prowling around Wyvern Tor.
Meanwhile, the Redbrands all seemed to have fled the town. As darkness fell, Maurice began leading the party over to the Shrine of Luck to pick up a tardy Carp from class.