User blog comment:IamJakuhoRaikoben/Chapter 353: Exorcism, Review./@comment-49.184.76.184-20130928015829/@comment-7418318-20130928140547

The townspeople never learned what really happened. They were after all evacuated before the incident happened.

Somewhere in the manga it was told that they fed the people a story about the Dragons being illusions that were part of the closing celebration.