Shadow doesn't recognise the mist, but he does notice the merchant's glassy eyes and puppet-like movement suggesting he has been drugged.

I’ll assume people are avoiding the burning gnome… Leif keeps the illusion up as he makes his way over to Screechirk and Shadow if he can spot them…

[[ Screechirk isn't trying to hide and I'm guessing a flying bird-man would be reasonably easy to spot. So should be able to notice where they are and come over I'd imagine. ]]

"Avoid touching that one" Shadow says, pointing at the merchant. "They have been drugged, intentionally or not."

Shadow inspects the merchants shop carefully. Perception 18 + 1(Guidance)

Screechirk, if Shadow wants, will pray for guidance upon him while searching the shop.

(Yeah, the crows is avoiding the burning gnome)

As Shadow draws near, the merchant lunges at him swinging a makeshift club in his hand.

(Attack: 10 Damage: 8 bludgeoning damage.)

Shadow dodged the wild swing and tosses a net on the merchant. "Help! Guards!"

Attack: 10 target is restrained untill they spend an action and succeed on a DC 13 Str check. 

When continuing his investigation Shadow is particularly looking for some vector- where did the problem come from?  Passive Perception 18

Looking around Shadow finds a broken vial just poking out from underneath the merchant's stall.

Screechirk, seeing Shadow seems to be doing well enough investigating the shop, swoops over the Leif. "That was quite the stampede there. Though you seem to have found a way to get them away from you." he gestures to the illusionary flames, "Seems Shadow is gathering information. You think we should try tracking down someone to ask what they saw happen?"

Quote from VitusW >>

Screechirk, seeing Shadow seems to be doing well enough investigating the shop, swoops over the Leif. "That was quite the stampede there. Though you seem to have found a way to get them away from you." he gestures to the illusionary flames, "Seems Shadow is gathering information. You think we should try tracking down someone to ask what they saw happen?"

” Yes this is very unusual.”  Leif drops the flames and lifts his hat a little barn swallow drops to Leif’s shoulder he whispers to the swallow which immediately flys off…

”Excuse me does anyone know this vendor?”

 (22)

Whilst Screechirk and Leif attempt to get the attention of terrified public, the merchant manages to throw the net to the ground. He then looks around to see who to target next, and decides that Shadow is still the nearest person.

Shadow attempts to disarm the shopkeeper by shooting the club out of his hand. " I have no quarrel with you but I will flip your off switch if you force me to"

Attack 15 v Athletics or Acrobatics (DMG p271) and if successful, uses his item interaction to pick it up and toss it far away.

Screechirk joins Leif in trying to get someone to stop and talk. "Please sir... ma'am... hello good child, would you parents perchance be around...?" He asks various people, hoping for at least one to stop running and actually talk.

Persuasion: 20+1 = 21

And Perception: 12+3 = 15 for seeing if Shadow needs/wants help.

(Athletics: 18)

 The merchant grips the crude weapon tightly in his hands. He then swings at Shadow twice.

(Attack: 14 Damage: 6 bludgeoning damage.
Attack: 11 Damage: 7 bludgeoning damage.)

A young woman stops to turn to Screechirk, "How can I help you?"

Shadow parries the blows deftly with his shield. "Help! Guards I am being attacked and fear for my life and the safety of others!" Shadow proclaimed loudly for everyone to hear. His eyes narrow as he states" Please stop attacking me or I will be forced to defend myself." 

Shadow attempts to disarm once more: 

Disarm 12

Screechirk gestures for Leif to come over, "It looks like we've found someone we can ask questions to." Turning to the woman he says, "Hello, ma'am, would you by chance know what happened before that merchant," he gestures to the man fighting Shadow, "went, well, berserk? Was there an inciting fight? Had he eaten or drunk anything? I'm just perplexed at what threw him into such a bloodlust." After the man's savage blows miss Shadow, he readies to join in the fray.

Initiative: 12 + 3 = 15
 

Leif casts minor illusion suddenly the merchant is crawling with scorpions, save int dc 13.

to the lady, “Um yes what do you know about that poor man covered in scorpions?”

(If needed initiative 7

(Initiative: 12)

(Athletics: 19)

Shadow makes an attempt to disarm the merchant, but his attempt fails again.

[[
Did the lady say anything in reply?

And looks like we've got an initiative order forming of 

20: Merchant
15: Screechirk
7: Leif
Shadow TBD

How far would Leif, Scree, and the Woman be from Shadow and the Merchant?
]]