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One of the elven women, Githraniel, explains that the village's main defenders, a party of 8 horse-mounted Elven men, had ridden out in response to the Orcish assault on a caraven some miles from this location. After some hours had passed, their village was set upon in overwhelming force by some 30 Orcs. Their remaining defenders were taken by surprise, sleep spells cast on their watch and their throats slit.
As Orcs piled into their village on Worgs, the villages women and children retreated to higher ground and Githraniel cut the fragile stairs leading to them. The Orcs at that stage set fire to the tree, which is the position you found them in.
However, 15 of the villagers were not so lucky. 8 Elven women and 7 children were snatched by the Orc band before they could make it to safety. The Orcish party seemed to be led by 3 dark priests, who departed with the bulk of the raiding party and their prize.
As you know, one returned...