He's hiding here with his spoils of war, but may have become lonely and enticed innocent travellers to stay with him. They will come to no harm in the short term, but will need to move on before they fall prey to his influence.
If you are willing to go in pursuit of this character he should not be too difficult to find. After you pass over the bridge, look for a small group of totara close to the rickety access to his lookout. He was last seen hiding behind a smallish one near the back.
The spoils are hidden as the title suggests. You will need to enter through the bottom as he has sealed the top entrance.