The Gods bound Loki in the cave with a serpent that will spit his venom on his eyebrows and it will poison him and this is where he will remain for the rest of his days. This will remain his punishment of the dousing of Asgard's brightest light.
The god hid as a giant monster when the warrior came. The monster disliked the idea of everyone loving Baldour and no matter how much Hermod tried to convince her she would not cry one tear.
With his last hope he started to shed a tears and mourn Baldour for a second time.
As Hermod wanted to grab Loki he turned into a fish (Salmon)
Loki made a mistake of thinking he is going to get away until Thor came and dragged him into the cave and bound him with a poisonous serpent.
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