Zeref's Lost Creation .

An unexpected reunion.

Natsu and the others were all happy that they were together now. Even though they had their arguments and all, they still were The Fairy Tail Guild.
Through thick and thin, the emblem of their guild will always shimmer.

Erza believed that Makarov wasn't in Magnolia, as not even Natsu could smell him out. She believed it was some kind of kidnapping or exile, as Natsu's nose could trace someone even if they were a 1000 km away.
Note that, when people are kidnapped or sent on exiles, a magical barrier is put on their body so that people cannot trace him/her.

Natsu - Dammit old man! What happened to you? * Shouts Gramps loudly *

Erza - * Smashes her hand on Natsu's head * Shut up! Yelling won't do any good.

Natsu - * Sobs his tears * Okkaayyy your highness.

Erza - Think Titania think! Where could the Master be right now?
- The woman's bath? No never!
- The magic games Stadium? No.
Ughhh! I can't think of anything right now!

Suddenly Freed bulges into the group and shouts ' GUYS YOU NEED TO COME WITH ME NOW! I WILL TELL YOU EVERYTHING LATER! '

Everyone looked oddly at Freed, and just about they were about to ask questions, Freed shouted ' MASTER MAKAROV IT IS HIM! '
Everyone rushed. Freed darted towards the Cathedral at a quick space.
What they saw, was unreal.
Two mages had been murdered. Their limbs were torn from their bodies and their heads were put upon stakes.
Below stood a figure known all too well. His eyes were soulless. No life in them. No life at all. His hands were stained with blood. Natsu couldn't find the words to say anything. Laxus was enraged to the point he was ready to go Dragon Force mode.
What stood there was their former Master, Makarov. A demonized Makarov. Void of anything.