Oh yeah, you're lost.
Soooo lost. And then you get a text message from Taryd:
"Suckers! I can't believe you fell for my fake trail of marshmallows!"
"At least the dragon is safe," Rema says.
"Yes, but at what cost, Rema. At what cost?"
You get some points for not giving up, and the dragon was actually saved. Still, you should never go off trail - it's bad for the ecosystem and you're going to get lost.
Also, your arch-nemesis won.