Mea culpa. I've started debating it here pending the new thread being created. But it's all mixed up, which is not good.
Ideally, we need to identify a line of play for this encounter that is as optimal as we, and the audience, can dream up and work out what resources are likely to be soaked up if we do it that way. "Getting hit by the giant while the wolves wake up" isn't much of a plan. Can people do better?
Pending seeing what the bard does that might change the situation, and assuming we don't want to go nova on the first encounter, as I see it, the paladin basically has four sensible options: escape, intimidate (he's +8), attack or heal.
If he attacks, it's +1 Longsword: 2 attacks at +11 to hit; 1d8+6 slashing +1d8 radiant (from Improved Divine Smite). If both attacks hit (if) average damage is 30 which isn't enough to one-shot a winter wolf, let alone a giant. So if he stands there and fights, at the present rate of damage he'll be dead before his second turn.
If he uses his first action to heal himself up, which he can with LoH, it only postpones the inevitable by one round. But he would do that if it would give time for the others to do something game-changing.