After completing the portal quest, my character chose to kill the suspicious man. After going inside and killing him I went to the crone and logged because it was late. The next day (today) I logged on and the server had not reset yet. So I walked out of the crone and towards the lift. Halfway there Johnny Dimes and his gang ran at me and killed me in the street for no apparent reason. The only thing I can think of is that those NPC's remained hostile after I killed the suspicious man..

Are we talking "suspicious man" as in the quest giver?

Yeah, the man inside of the house that tries to charge 100 gold before you go through the portal.

Faction issue. Has this been fixed yet?

Since nobody has mentioned it in a while, I am assuming this has been fixed.