Not me, and not in a town, but something like that. My first time playing I made a 'pocket island' world (no mountains, only 4 towns, all human, Adventure mode only) with 1 cave, 1 hydra, and a few forgotten beasts running around underground. Of course my first task was to slay the hydra. Of course I was ill-prepared and got pwnt by a wolf. This now-named wolf proceeded to get devoured by the hydra, along with my 2nd ill-prepared adventurer. Next I decided to take it easier, acquire some companions, and hopefully take an easier task to beef up my skills before going after the hydra. The good news: my target was a human criminal. The bad news: he was hiding in the same cave the hydra lived in. The few wolves and and cougars I had slaughtered while wandering around had already raised my combat skills to superhuman levels, so I decided to go for it.
As I approached the cave, I saw an announcement about one of the hydra's noses being bitten off and spit out. This worried me a bit, but I continued on. A few levels into the cave, I find the corpses of the hydra and the human criminal I had be tasked to slay. Standing over them was their killer: a gopher brute. I checked its inventory and saw it was holding a coat. Viewing the coat's description showed that it had belonged to the human, and had been used to slay the hydra. Yes, the gopher brute had killed the human, stole his coat, and used to to bludgeon the hydra to death.
It then tried to do the same to me, but my more conventional weapons won the fight.
I DID take that coat back with me, so I just might try this out myself..