This ability raised a few questions amongst our group during our last game and I thought I would post them here for clarification.

1) Do the 2 spaces have to be in a straight line?

2) are lateral moves allowed? (Moving to a space that neither increases or decreases the distance between the hero and the crypt dragon)

3) if no to #2, can one of the spaces moved into be a lateral move as long as the second one increases the distance between the hero and crypt dragon (in other words, does each space moved into need to increase the distance, or is it a legal move as long as the net distance after the ability has been resolved is greater than it was before)

It does not have to be in a straight line, but each space moved, if possible, must increase the distance between the hero and the dragon. That is, if the hero starts adjacent to the dragon (which he must) after Cause Fear, he has to be 3 spaces away from the dragon, unless there is something preventing him from doing so. The hero does the moving, since "he moves" 2 spaces directly away.