Oh, he DID die.
Though it's odd that we didn't SEE it happen.
Is there something to hide regarding the circumstances or something? Like the method, or the identity of the one who pulled it off?
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this could also be that the story is arranged for us to "see" through the eyes of nameless, and one big thing is she doesn't trust lady wolf, or most people for that matter.
the unwillingness to bring her out can be easily explained that, their merry band isn't exactly the most welcome in town, especially with the new captain of the guard and the general current situation
could be yes, off screen actions have some tropes like that around them so it seems intentional
but i am certainly not privy to any more information so i am speculating as much as you, but most character actions seem mostly realistic base on what we know of the world and story (with Nameless being the most irrational)