Tang Shaoyang easily figured out what situation he was in. It did not take someone smart to figure this out, and it seemed Erna also realized what happened. The girl did not expect her action would be used against her.
They killed the four mercenaries to smear Lady Akhor's name, a first step if they, or whoever was behind these people, wanted to take the town from Lady Akhor. One of them was beaten black and blue, and all the wounds remained, clearly lacking in an attempt to save the guy because they did not use potion for him. The remaining three had their faces turned blue, clearly dying from poison. That was a good way to kill those three since a lot of people witnessed the three leave the tavern.