(I suppose my hope was that you all would be PEOPLE and decide that you should stick together for the sake of this and so you can better survive ((in character)) but I guess you're all not that wise!!! Plus I didn't want to force you all into a certain line of action because I thought it would be boring and linear. I wanted to allow you guys to choose what to do. I thought keeping you as prisoners together, putting you in a party together, forcing you to fight together would help you to choose things together but I'm wrong >.>)
While Yilin passes out, too, his body twists and practically wrings itself out. His arms, legs, body, and head all condense into a sort of tubey-rope-length, with long fins and, thankfully, new gills. It's possible to grasp with short claws and segmented, frilly fins, but it'll take some practice. His maw reshapes, losing a nose of any sort, and his eyes move to the side of his face. His ears pull back into his head and his mouth opens wide, wide, wider - until it's the widest part of his face and his teeth grow in a circle around the entire interior of the "lip." His spine lengthens enough to have a short tail that ends in a bunch of frills, too, and his organs reshape to have more simplistic functions, sort of like a tube-worm. Pink, fleshy skin wouldn't be fitting for his new form, so it darkens to a sharp brown with occasional white or gray spots. The new eel-vorzh looks to not be having any issue with the electricity anymore, but he is most definitely still unconscious.
Shocked and disturbed, and rightfully so, the soldier and his CO decide that now would be a good time to leave this odd scene behind. They'll just make some report to cover up for the weird crap that just happened, and the tiny skum otter that barely impacted their mounts wouldn't be worth capturing - it's probably just some pet anyway.
When the two idiot mages come to, they can attempt and readjust to their new forms. The thick scales and new fins on Virmir could be helpful once he really learns how to use them, and the wiry and spry form Yilin has would help him slither throughout the water. Maybe he could even coax the ability to electrocute the immediate area around him out of nothingness. (There are a lot of stat things to mention here and I think I should have hit them earlier, so rather than naming off everything I'm just going to give a quick list and if you need justification you can challenge it)
Yilin
-1 STR
+2 AGI
+1 MAG
+1 RES
-2 CHA
0 INT
Virmir
+1 STR
+1 AGI
0 MAG
+1 RES
+2 CHA
-2 INT
It's probably worth mentioning that sea horses don't really know how to speak, so that could cause some problems for Virmir in the future. HOWEVER, he was the only one with a real goal, and it did seem to make sense - seeking out why in the world fatal blows have instead been causing transformations would probably be a good idea. You're still around a tavern, which would be worth investigating (though a seahorse mount might have to wait outside) and there might be some reliable source of genius magickery in the noble houses of the merfolk. Maybe there are some hermit mages out in the ocean, or perhaps a surfacer would know what's going on. It could be due to that first fight and that giant tentacley thing above you that's responsible, but you get the feeling that you wouldn't be able to challenge it or even find it again without some grievous harm.