A few days ago I was playing with a friend and I had to exit the map in order to win the game. Unfortunately there was a stupid shadow dragon sitting on the exit blocking it off. I did some quick thinking and realized that I had that one female yellow hero who has the heroic feat where at the start of her turn she can move monsters 2 spaces. (sorry I can't remember her name right now... I think its like Alyssa or something...) But anyways so I used that feat to move the dragon out of the way 2 spaces, the first space was unoccupied and so was the second, but there was no room for the dragon to expand even though there were empty. Would this result in the dragon having to expand to the nearest possible place, or would I not be able to move it? I argued that because it was not the overlord who was moving thedragon but rather another game effect it had to re-expand further away. If that makes any sense. (by the way the overlord refused to move the dragon no matter what so facing overwhelming odds I chopped it up in one turn and ran off

If a move would result in something impossible, that move can't be performed. You can't move the dragon to a space where it couldn't expand, nor could you move it "extra" spaces just to make it fit. By the same token, the OL cannot interrupt a hero's movement if the space he's currently in isn't empty. Because it would be impossible for the hero to stop there, the OL cannot play a card that could make him stop, or otherwise interrupt his movement.

The "closest empty space" rule usually occurs when things are placed, not when they are moved. Reinforcements, standing up hero tokens, and summoning familiars all are able to be performed in the nearest empty space of the requirements unless otherwise stated.

Defeating the dragon is what you had to do in this case, and it sounds like that worked.

thanks for clearing that up!