People should start prepping for an evacuation at a moments notice. A Town curfew should be enacted to try and weed out the spy. Mine and otherwise hamper movement down the road. Fortifications should be set up along the river.
The put the whole town to a zone of truth test to see if anyone is a spy. The don’t find any spy and begin building the fortifications.
After spending some time trying to get the spy to reveal themselves to no avail they decide to scout cinder hill.
The head up north and meet with Old Warklegnaw and forge a friendship with the clan of Forest Giants.
They then meet with a troop of hobgoblins guarding Skull Gorge and decimate them.