The bubbling stops. Further action in dismantling the runewell would take more expertise than you currently have among you, but after a few more attempts to raise a wrathspawn, it's clear that the immediate danger has passed.
Spoiler: Anyone using detect magicThe magic is still there, but faint, as if dormant.
Spoiler: OOCWelcome to level 3!
Spoiler: OOC ReminderOverarching story so far: Tsuto Kaijutsu has been captured and is in a cell awaiting trial. Lonjiku Kaijutsu is dead. Nualia Tobyn is alive and presumably with the bandits and goblins to the East of Sandpoint. Chances are good that since Tsuto won't be reporting back, the goblins will come to try to raid Sandpoint a second time in a few days, so you have some time to rest and recharge, but need to figure out how to get to the goblins before they start their warpath.