The armored Halfling mumbles a "Thanks," when Nelio finishes his lay on hands. It's unclear which he dislikes more: the intense rubdown from an overbearing Gnome, or the poor performance in the fight that just concluded. Whatever the case, we walks off a bit to sulk.
In response to Nelio's questioning, Toral says, "Well, one of them grabbed my cloak and pulled me down under the water. I wiggled free of the cloak and swam as fast as I could. They weren't too fast in the water. After I got far enough away, I took shelter in a big tree. I started eating what father showed me was good enough, and after a couple days I heard voices shouting my name. I called back, but before they could reach me these things stopped them. I don't know how they do it, but they change you. These things were once people I knew in Argos."
Caerus' search does not turn up much. Whatever these men became, they cared little for possessions. The armor they did have was in very poor condition, and often vital portions were missing entirely while mundane sections remained. It would appear that they were wearing this when "whatever happened to them" occurred, and they simply didn't bother with it again. Empty scabbards and hanging quivers support this theory.