We headed back to the underwater library in Cael Morrow to recuperate and talk to Insight. On our way back in, we were attacked by the ruidium shark, and destroyed it pretty handily.
Next, we met Olara, the sea elf innkeeper. We convinced her to come back to the library with us, then continued on to the next building.
In the next building, Fanfare met a few ghosts, who Alyxian apparently died defying. They gave her a vision of Cael Morrow in its prime, then its evacuation as it was destroyed by Grumsh, possibly the creator of the orcs. The vision also included Alyxian's apparent death to Grumsh's spear.
They apparently sacrificed themselves to preserve their memories; Fanfare promised to spread their stories, and immediately began composing their ballad in her head. They disappeared.
In the next room, we met Galeokaerda, apparently Insight's old roommate, and began beating the shit out of her.