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Different rules for every server
In Ruairi, Sabina gave me a fixed white dye for answering a question right. I assumed those were the items that needed to be traded over, but none of the successive GMs ever asked for anything (at least, nothing I saw)...
As for the teleport thing, I'm pretty sure Mohawkguy actually said himself he was going to teleport to a random spot and give the prize to whoever was closest, and that was today, in Tarlach. I'm not entirely sure what he had been doing in Ruairi, but the method of handing out prizes was definitely random too, so I assume he was using a similar modus operandi, and I just didn't catch it.
I missed what happened in Mari, but I think it's safe to assume the same thing happened. A crowd of that size is extremely hard to control, and the methods they tried to originally implement doesn't look like the type to be effective...they may have improvised in Mari and stuck with it for Ruairi and Tarlach. That would be my guess.
So this degenerated from a hunting game to a mini-quiz and lottery game, hmm...