To start this quest you should talk to Spirit of Mudbarrow.
We encountered a spirit called Mudbarrow. He wants us to get a sleeping Lone Wolf to reveal where she hid his gold after she killed him.
No Laughing Matter
Related points of interest
Quest stages of No Laughing Matter
1. Told Wolf2
Talk to sleeping Slumberjack ...
*Whisper in her ear; Mudbarrow wants his money.*
... and ...
*Search her for Mudbarrow's money.*
The result will be ...
Slumberjack revealed the location of the loot.
2. Got Reward
Talk to Spirit of Mudbarrow again.
Mudbarrow has rewarded us for our effort and departed for the Hall of Echoes.
2.1. Quest Reward
Go to the place marked on your map as Lone Wolf's Cache. You need 18 Wits to be able to find it. Dig here and take your reward.
3. Killed Wolf2
Slumberjack is dead. We won't be able to learn the location of the hidden loot from her now.
4. Ghost Sucked
The spirit of Mudbarrow's Source was consumed. There's nothing further to be done about this matter, it seems.
5. Close Left R C
We departed from Reaper's Coast without helping the spirit of Mudbarrow.