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There is a character there named Sepp "The Burnished One" that I killed with the other 4 characters after I accepted my fight reward for a pretty large amount of xp (I'm lvl 3 - Sepp alone was worth 2400xp).

I did this because, like speculations I read here, it seems to be a PvP fight arena - as one can surmise after asking for another fight but it going to the "I changed my mind" only response afterwards.

BUT, then I went outside and talked to Hoody (or whatever her name was) again and she asked if I talked to "The Burnished One", saying that was good because she was sure I'd be seeing him again ...

Does he play a role later that I just screwed up? (just yes or no, spoiler-free please)
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Nevermind, I'm way past that now and will just live with it. Eventually I'll find out on the wiki page.