The vorzh focuses so much on dodging the icicle attack that it can't manage to avoid the claws and teeth of Attor. It ends up being calamari for the krait, and it seems that the squidy vorzh must be quite tasty.
With all the enemies handled in one way or another, that big, tentacley mass from above "speaks" to you in your minds again. "Traitorous party defeat. Trespasser party victory. Trespasser party will be restored."
That last word seems to linger in your heads for a while. Attor and Yilin feel their strength returning, like they had never been involved in a life-or-death situation in the first place. Any wounds or annoyances suffered in the fight completely disappear from their bodies. There aren't any problems for them, it seems.
But Mike and Virmir are not left alone by the great-tentacles-in-the-sky. Their bodies rise up somewhat in the water, shifting around. Mike is brought from a feral state to a more anthro-ish posture, though he remains an otter... for now. Their wounds are healed and their blood is returned to where it should be. They aren't left alone, though - their bodies begin to secrete an oily, black-purple substance, and the X's that Virmir has for eyes turn red, as do Mike's. Their paws gain new webbing, and they gain frilly fins and gills along their bodies.
"Old forms incapable of combat," the big arena spectator "says." "Proven this. Remedied."
It does seem like the bodies are a little more flexible and durable (+1 STR, +1 AGI for Mike and Virmir), given their better accommodation to the water, and the oil has a natural resistance against most every magic (+2 RES). But the odd bodies do seem more tied to... Eldritch forces, like whatever that thing is above. Their magic seems more powerful because of it (+1 MAG) but as they regain consciousness they can feel more odd whispers and callings from deep, dark entities in the oceans. It's hard to think and concentrate while their thoughts are constantly invaded (-1 CHA, -1 INT).
With just a thought from the tentacle-y mass, the weapons and spikes over the arena are pulled away and the skum fly down to pick off the leftovers. "Trespasser party free." Some of the skum bump into your group, but they don't pick any fights with you.