I was in Musp. two days ago, thumping ants and saw him. Orange to a level 23. Soooo... Guess it's safe to assume that he has a level range that he can spawn from. Good to know.
I just turned 27 so I figured I'd go get my cloak solo without a problem. He was orange! So as of 8/15/02 he goes up to at least 28. I could swear he was always orange when my group fought him at 24 just last week, they must have boosted him recently.
Also, he dropped cloak when I was in a group and only one person was 25 (all others lower). The 25 got it, so I know you don't have to wait until 27 to get it. Well, at least last week you didn't...