I do apologise for any confusion you may have been caused, Maulysia, but the Game Master was correct in saying that the NPC in question is not "broken." The Scarshield Quartermaster, however, was recently moved to a different location in Blackrock Mountain, which would explain why you are no longer able to find him in his old haunt. Go down the passageway toward the Orb of Command, and take the first available left; the Quartermaster should be at the bottom of that ramp, just waiting for you to say hello. :)
Look on my works, ye mighty, and despair...