Liar's Retreat

Location
 is found in the Northwestern part of The Reach, southwest of Solitude and northeast of Karthwasten. An alternate route is to travel north-west from Broken Tower Redoubt.

It is a bandit hideout that, upon arrival, is found to be in the process of being overrun by falmer. Exploration will reveal the gaping hole used by the falmer to invade, leading to falmer lairs further in.

Summary
A single hostile Orc bandit is hiding from the falmer, barricaded in a sleeping area behind a locked door. There are also frostbite spiders, (one of which drops from a hole in the ceiling) and chaurus, (including a chaurus reaper), deeper inside the cave system. With, the chaurus reaper may be replaced by a chaurus hunter.

When exploring the tunnels the Dragonborn may come across two enclosures. One enclosure contains a dead bandit and the other contains two live bandits who are being taunted by a falmer on the other side of a gate. The bandits may manage to open the gate and kill the falmer. If they live, they are hostile to the Dragonborn, even if they assisted them.

The final chamber is Dwemer. Rahd's body lies on an alter with a falmer sword stuck in his chest in the middle of the room.

When the tavern area is reentered, three bandits arrive, wondering what has happened. They become hostile immediately.

There are two corundum ore veins between the spider's nest and the pens holding the bandits. Another is outside.

Notable loot

 * Speech skill book Biography of the Wolf Queen in the third room to the left, on the stone shelf between the iron helmet and the potions.
 * The Longhammer next to Rahd's corpse.
 * Tavern Clothes, on a dead girl behind the bar in the first room. (The tavern clothes do respawn on the dead girl, as long as the dungeon is not cleared.)

Mer/Elf blood
This is a good place to gather the blood for the quest Discerning the Transmundane:
 * The cave is inhabited by falmer.
 * One of the bandits trying to escape is an Orc.
 * All the elven blood types are here except for the Altmer.

Trivia

 * This is one of the few places where tavern clothes can be found, (on a dead female bandit behind the bar).
 * Chaurus eggs and many types of mushroom, including glowing mushrooms can be harvested here.
 * M'aiq the Liar is never found here.