Or maybe there's just the Necromancer, and he's the one resurrecting the dead inmates, and you have to kill him to lay them all to rest.
And I would contribute something regarding the rest of Alethia, but I don't knwo the lore too well.
Anyway, the asylum suits me to a t. BEst to play to ones specialities, after all.
How about it underlies with the rest of the MQ (like one of my previous ideas) like, this Necromancer betrayed the Empire or w/e it's called (it's been so long I forget) and went here to forge power and try to take over all of Alethia or something like that - so what about this volcanic life form idea I came up with before were gonna go with that, btw
Maybe he's creating an army in the Asylum while he prepares to take control of the life forms in the volcano which give him some insane evil power or something like that.
Okay reading more how about the Insane possessed necromancer dude or w/e's demon that's possessing him is really the volcanic life force that controls or seeks control of the island. Or maybe it's a demon
controlled by that force, which you kill and then learn more about it.