Ysly pissed off the Doemnels. I hate the Doemnels and I have a rep of Terror with them. It would be fully in character to actually warn Ysly of the bounty and help her get safe, failing the quest. It would not be in character to help the Doemnels in any way. Of course, all bounties so far have been immediately hostile and attacked on sight, despite the fact that they can't know why I'm there. Makes sense for some, but for others it seems they might be willing to talk me out of it, but that's never an option. I assume I'll get the same result walking up to Ysly.
This kind of ruins immersion for me.
I'm going to have to live with an unfinished quest.
