I have never seen anything like that happen. We all boggled.
This was also the evening where we made (yet again) our mistake of trusting NPCs. A nice old woman throwing garbage into a chasm turned out to be a howling hag (like a banshee) who was feeding chopped-up zombie parts to her pet young dragon. Our mistake was announcing our presence, and talking to her. As Ash put it, "Our mistake is treating this like a real world, and treating the people like anything other than talking meat nuggets with experience."