The party arrives in the village of Nightstone to find it decimated by boulders and infested with goblins. The party kills a number of the goblin intruders, and captures one named Pojo. They also repair the bridge to the town keep and find four guards there, mourning the loss of Lady Nandar and contemplating their next move.
Apparently a cloud castle of cloud giants arrived a few days prior, pummeling the town with boulders from above. When the townspeople ran, the cloud giants descended, taking the obsidian obelisk that gave the town its name. The guards were trapped in the keep, the bridge having been destroyed, but they guessed the townsfolk evacuated to the Dripping Caves, about a mile north of Nightstone. The goblins arrived shortly after to ransack the empty village.