Grunaxe disappears after you've talked to him (or for that matter after he talked to you, while you flee lillies or rangers.) When I was there it seemed kinda logical, sort of like setting him free by defeating the scorpion.
About Torin reacting to you after visiting Grunaxe: So far I remember no NPC outside the cities react to anything you achieve in the game: starting with the stout you can't tell you gave his brother the ratpie, the lovely lady Whossname you can't tell you've delivered the letter, Talrik you can't tell you've found his treasure etc.
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