Apparently it is a good idea not to talk about it too loudly, since any random noob might follow and attempt to steal the loot. They also recommended bringing fatigues, which make it easy to get away until the werewolf switches target.
In fact, theives are such a potential problem that many of the high levels carry scrolls like fear, blind, and silence. The general rule at the moment is that if you wear a spiked helmet and morning star, then you get to join in and roll for the loot. Everyone else is considered "unwanted". We left town with a few unwanteds following:
Many got chased away. Though it is not really possible to properly police the area, as it is a well-known event and there are many odd characters who show up.
Greg (who was busy camping the WW spawn) helped out with "noob clean up". While some of them were hidden in the trees.
The werewolf eventually appeared, and even with a small army of people, one can see him rip people to shreds:
A pelt did drop. The loot system involved standing in a line and flipping, everyone who got "heads" would move forward and reflip. The last two left would call heads or tails as normal.
Swordsman won it and got to make a backpack, very impressive.
Overall I think the rarity and power of the werewolf adds a lot of flavor to the game. I suspect rare spawns in this game will often involve regular massacres of low or mid-levels attempting to interfere, but that the possibility of them interfering adds to the fun of the event. However the forest is very large, so it might be too easy to steal a drop and then teleport away.