"Looks like you've got this thing taken care of, I'm gonna track down that guy." Gendan dashes (60ft) to the location that she saw the guy, does she catch a glimpse when she gets there?

Gendan, roll perception w/o disadvantage DC10.

P.S: You are now out of initiative.

Perception 13

I said without disadvantage but whatever, you succeed anyway. The reason I called for without disadvantage was because he isn't actively hiding but his dark clothes in the night make him hard to spot. Gendan, what do you do?

Meanwhile, back at the campsite, the male goblin decides he doesn't want to be owlbear food so he flees. Skiirod and Folki continue the attack.

Skiirod: Hit: 18 Dmg: 7

Folki: Hit: 8 Dmg: 13

Skiirod Crit: 8

Hunin's turn.

Gendan has already used her action (dash), but she uses her bonus action to place a Hex on the man and he gets disadv on DEX checks. How far is the man from her now?

(Skiirod might want to smite on that crit ;-) )

(Thanks for the reminder)

Skiirod smites: 7

Gendan, the man is 55ft away from you.

Hunin with the orb still in hand begins his next incantation but he knows this one well and comes with out much effort as fire flies from the center of the orb.

 Fire Bolt: 13 Damage: 8

Will continue to move towards the man and Gendan.

Hunin, clarify what attack you used. Also, you continue to move toward the man but...

Gendan, the man finally notices you. As he turns around, you notice he is holding a small light (like a match stick). He has lit something. He dashes back into the darkness. What do you do? (Hunin will arrive at this place after your next post.)

Hunin lets a ray of flame fly though the air, striking the beast at the side.

The owlbear decides it has had enough so it disengages and runs away into the forest. I don't think Folki or Skiirod will rush after it so you guys win.

Everyone gets 100 XP.

Hunin, don't update your character sheet, I will add necessary XP to it so you can level at the same time as everyone else.

Does his new light source emit any light? I imagine this may make it even easier to track him. Gendan will continue to dash towards him.

(Folki may've learnt his lesson after running off alone last time ;-) )

No. The light source is like a match so it really doesn't help. Also, when he runs, he drops it and it goes out. As Gendan dashes toward him, she notices the thing that he lit. A makeshift firework flies up in the air and, leaving a trail of red smoke. It doesn't explode or shine like any other firework.

Gendan, as you move forward, you don't see him anymore. You get the feeling he's hiding nearby. Roll Perception with disadvantage (you can remove this disadvantage by lighting a torch).

PS: Gendan, in light of this new information, you can choose to dash after the man like you stated or you can choose to do something else. Like observing the device.

Hunin arrives just in time to see the firework take to the skies.

Val, you notice this weird smoke trail from your tree.

If there is no location that she has spotted him, then she will not continue dashing. She will light a torch and look around for him, especially if it seems he left any footprints. Perception 13.

"New guy, he dropped something over there. He's gotta be around here somewhere."

You don't find him. Are you not at all concerned by the firework he just launched up into the sky?

(Can I use Prestidigitation to disperse the red smoke and either have like a  small gust of wind pull it to the ground or does the spell not work in that way?)

Well, it's basically a firework that's leaving a trail of thick smoke as it flies into the sky. You can remove some of the smoke with Prestidigitation but once it reaches more than 10ft into the sky, you can't really do anything else. Druidcraft would have probably worked better here.