To be quick about it the last session ended with the party at Vargas house after catching him beating on Victor for using magic in his home. The party intervened and used hold person to stop him at which time Victor ran upstairs into his room locked the door and activated the magic circle which disintegrated him infront of the 1 PCs who had followed him up and broke through his locked door.

How would Vargas respond? How bad is this for the party?

The session ended after some talk about killing Vargas and his wife pleading for them not to. So I'm still worried about what may happen but trying to be prepared either way.

Edit: to be clear, when the PC who saw this happen came back down she only said Victor escaped she then cast suggestion and said i want you to believe me. So for Vargas all that's happened is they cast hold person on him and then Victor ran away.

Double bonus if you can give me something to work into the Festival of the blazing sun which is cannonically the next day, assuming he survives.