This was some really weird glitch or something:
Notice the creepy empty potion bottle. I think it said something, but I was playing music at the time.
Ok, there are certain times when someone is completing a quest in the same area you are, where the game will trigger some kind of response on everyone's screen. This is the same as when the Great Mooddha was talking to Silverheart.
I can't remember the exact quest that involves the potion bottle you saw, but if I remember right it's a fire or ice wizard spell quest where you are asked to get a vial of icy water from the Entrance hall. Unfortunately, when you complete that portion of the quest, it broadcasts it to everybody in the area.
In that previous post about the Great Mooddha, I debated whether if it was a glitch or not, but on this particular one, I'm calling glitch. You shouldn't get this broadcast.
COME HERE GLITCH, COME HERE!
AWWWW, THAT'S A GOOD GLITCH! WHO'S A GOOD BOY!