Right after this battle ends the game freezes music still plays but nothing happens.
(http://i.imgur.com/0RkOXvX.png)
I've left running for awhile and yeah nothing happens.
You killed the last enemy by letting them drown, right? That's been fixed for the next update. Sit tight! :)
On a semi related note, on the bandit fortress map after the bridge came down (really weirdly with random stone on the sides of the 3-wide bridge) the bandits kept trying to attack where my wooden bridge was (but it was stone, taking awhile for them to break). When they finally succeeded, they attacked the same spot again (this time it was only water) and froze the game since the bandit "had no valid target for attack" but didn't cancel the attack.
Ah! That's no good. I think I've got a fix for that--it'll be in the next update.