Vendor NPC found chatting with Malady when you approach the demon encampment in Bloodmoon Island, who has an interesting set of dialogue regarding the before-mentioned character.
If questioned about his connection with Malady, Basatan will reveal the two have a certain "deal" or "wager" between them. It would appear by Basatan's choice of words that he is currently on the winning side of the bet.
If asked about his purpose on the Island, he vaguely mentions that he is there until ordered else wise. Most likely referring to the same "Master" other NPC's in the camp seemingly follow.