You continue through the northern passage, happy to move past the smoke and flames of the gnomish homes. Ahead of you lies a once beautiful fountain amidst the small shops that made the market circle. The scene is nothing like you remember, with doors kicked in and a large number of gnome bodies littering the ground. The fountain water itself has a slight reddish hue, most likely from the couple of gnome bodies still twitching inside.
Four gnolls are conferring with one another in the center of the area when five kobolds come from the passage leading to the mage quarters. The leader of the five, an older kobold wearing crimson robes with the eye of a dragon on the back says to the strongest of the gnolls, "It is done, Grome." He cleans a bloodied dagger on the hem of his robe. "I lost all my remaining drones and two of my clan, but the spellcasters are finished. We need one final push to take their chief and his guards, however it will be bloody. Perhaps we should pull back. We've lost enough people."
The gnoll growls, "Bah! You've only lost your zombies, Kazsinastrayas, and a handful of men. I've lost half my troops, but I'm no coward. We finish this here and now, then the caves are ours. Go back to Astraughlay and tell him of your failures. He has shown me the truth. First this place falls to me, then I will be on my path to become king."
The kobold's eyebrows furrow as he hisses, "Grome, I've been thinking about the visions he has shown us. Yes, he has given us power. Yes, what he has shown us has come true so far. But look at us, Grome! The goblins are finished as a united force, your men are down to half their strength, and I've lost nearly all my drones that helped my tribe get this far in the first place. But after this, what? We've been decimated, Grome! We..." He stops as he sees your party enter the room. "...are in trouble."
You are in the entrace to the market circle. The four gnolls stand 30 feet away and are blocking the five kobolds from your attacks. The kobolds all wield shortbows, except for their robed leader, who wields a knife and has some strange-looking components on his belt. The gnoll are armed with battle-axes and wield them with two hands, except for the leader who is using a halberd. Instead of studded leather, he wears a fine-looking suit of chain mail. There is still smoke behind you, but you believe the fire has been put out by the gnomes.