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I think he's just one of the random bounties you can get from the board in the town. I had found him originally in the dungeon thats straight in front of the town past the wall. I stopped going after those bounties since they were predictable and only gave like $50. They usually spawn on the first floor at the start. Haven't gone after them since v3.9.

Wait, there are *random* bounties? I have yet to do those then...