There is something you should know. I have been keeping this to myself, lest I worsen Medrod's paranoia, but I, too, have seen the winged eyeball.
I cannot say whether it was coincidence, but my sighting took place precisely the same time as Medrod's. I was heading home after a day of digging when a shadow fell over me.
Looking up, I found myself locked in a gaze with a giant eyeball. I let out a scream at the top of my lungs and ran without once looking back. This happened at the rocky area west of here, in case you had a mind to investigate.