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I thought they was talking to me at first for taking a Gargoyle from the CY right outside of where Dhamp spawns, but then I realized it was people towards the entrance of Mistmoore who were bickering.
From the outside looking in I think that the Magician may have been a little burned out, but that the entire fiasco could have been easily avoided with basic diplomacy. I am not holding anything against anyone at this time since I've been in the same position of all involved parties, and sometimes we react in ways we may later regret.