He got in trouble with a so-called "witch," Sosia Caristiana. Apparently, Wine-Sot got a bit too friendly with the witch. So in turn, she put a sleep spell on him. She then took all his clothes and other items, including his beloved Cloudcleaver. She believed he was too angry and decided to not give him the axe. Instead, she tells the Nerevarine to tell him that to get the axe, he must wait three days and head to the Mages' Guild and talk to her. He, not quite enjoying the thought of waiting three days, will get angry and demand the Nerevarine pick a side: Him or the "Witch."
Picking Him: Receive two points to strength and anything on Sosia, and maybe Cloudclever (if Hlormar is killed, of course).
Picking Her: Kill Wine-Sot and Sosia will thank the Nerevarine. Also, with her thanks, she will reward some health and fatigue potions.
Greeing ""Hail and well met stranger! As ye can plainly see, I require some assistance if ye be kind enough to grant it. I need help finding the festering witch who has robbed me blind and left me for dead.""
witch "A witch she had to be. I was on my way to Caldera when I met her. She was a stranger here like myself, and our conversations lightened the burden of travel. She was quite friendly and, well, y'know, we set up camp together. But that night she revealed the witch inside. Cast a spell on me. I couldn't so much as blink! Stole everything, even my worn out clothes, but most importantly, she took my prized axe Cloudcleaver. Join with me, stranger! And let's find her and extract her entrails together!"[?] "I knew you had the bloodlust in you, stranger! I believe she is still camped where I left her up to the northwest, though I could be wrong as the spell disoriented me a bit, it did. You know this area better than me -- lead the way! This witch shall rue the day she met Hlormar Wine-Sot!"
[?] "Ah, me axe Cloudcleaver. A fine blade she is, though now I fear what that witch's touch will do to it. Me own father Balmir used it himself to slay the Terror of Wrothgar's Quagmire, he did. Now granted the Terror turned out to be a new born nix-hound eating the neighbor's marshmerrow, but me father found him and slew him nevertheless in as grand a fashion as I have ever borne witness to. I cannot wait to have the blade in my hands again, then I'll use it to take that witch's head clean off, I will."
- If asked about his trade Hlormar will mention his father Balmir, who was apparently killed by "Snow Elves." He probably means Falmer by this, as true Snow Elves have been extinct for years.