According to his say-so Bifitz has negated the curse. Through a lengthy spell he was able to physically remove it from within the pedestal. He examined the chalice and the red ash. He tells us that the dark elves must have been aware of the curse for he believes the chalice and something that had been placed on top to close it off was their attempt to deflect its effect.
This may explain why it was stronger at other points along the Low-way in the deserted places. And that whoever took away whatever enclosed the chalice caused the curse to pour back onto the stronghold. Hence the horrific effect on the Dromadil pixies.
Noralei and I met with Merlin afterwards and filled him in about the missing Will’o’the Wisp. He agreed with our suspicions that Willie may be responsible for removing the chalice cover.
And he is fairly certain that it was some kind of crystal.