We're likely very near the end of the encounter, otherwise I'd bring you in, but basically this is all just a "meet-cute". So don't be too worried about understanding....
But, yea, everyone is/has been at a Festival thrown by King Bard to celebrate the 5th Anniversary of the Battle of the 5 Armies and death of Smaug.
The big event capping off the end of this day was a parade, featuring an oliphaunt.
Everyone was at the parade, certain people started noticing certain things going wrong.
Now they're trying to prevent a tragedy from happening.
That's it.