This is what the golden demon is known for. It's centered on the inn. The other buildings merely burned. (shen says "the fire was set to trap people in the front of the inn") So they would be forced to watch? I've never heard of an evil spirit wanting an audience... (Master kusho is trying to understand "the golden demon" and why their bodies were laid out as they were, perplexed on why a spirit would want an audience for its misdeeds.)

Shen, go to the nearest temple. get healing supplies. Govos, grab whatever sleep root we have. (after spotting some survivors kusho orders his students to get supplies ready so they can try and heal the wounded. try to show calm yet urgency in his voice)

In the time it takes to save that one man, three will die. He dies. They live. Learn this lesson (Master Kusho gives a brutal life lesson to a young Zed explaining to him that while yes he could save this one man if he tries long and hard enough, these three others may die. However, moving on to the others he will be able to save three lives vs just one. While cruel it is a logical lesson on how to save as many people as possible in a horrible situation.