So with the squidheads and their minions killed or gone, we made our way back to the tunnel leading back out and rested in magic hut. Once we were recovered, we went back into underground complex and started mapping it.
It seem to be some sort of old dwarven outpost or settlement. We went room by room until we get to a forge room, that seemed to be still on and working. We see signs of recent battle. As soon as we step in though, the weapons and armor lying around came to life.
They attack us, so we attack them back. There were a lot of things, but we kill them all.