Based only on the strange look the elf gave the masked individual, it was easy to guess that the man did not laugh very often. Still, Kestis and Sheza were confused as to what part of her words made him laugh. For Kestis's part, he was extremely nervous.
When he looked at the masked man, he sensed no mana. His presence was even less than that of an Unranked mortal. Were he in a crowd, he would be so unremarkable in his presence that he might as well have been invisible to anyone who was not specifically looking for him.
Sheza started to shout angrily at their guest. She was infuriated that she was seemingly being mocked. Though that may not have been the man's intention, it was certainly how she took his actions.