Khrudgelmir took it upon himself to figure out who "killed" Jafnhar and swore to take revenge on whoever was responsible for his apparent death. You returned to Jafnhar and told him what Khrudgelmir said. Jafnhar asked you to place the blame on the Lepharist Revolutionaries. After you gave Khrudgelmir the Lepharist Insignia, he sensed that the Shadow Elders and the Lepharist Revolutionaries were readying to war against each other.