It is a complete mystery. If I were reading it, I would say to myself "I wonder what on earth he meant by that?" I have a crazy guess but it's only a crazy guess: maybe the writer feels that descriptions of eyes in short stories are always trite and hackneyed, and instead of saying "piercing eyes" or "dead eyes" or "the eyes of a vulture," thought it would be clever to say "short-story eyes."

I would say that the writer is defining the person as "the skinny moustache" - he didn't know him and so he used this feature as a kind of name to distinguish him from the others. "Short-story eyes" is too vague or bizarre to be a good expression in a novel, in my opinion. Perhaps he means the visual look of someone who is telling a short-story, but still I can't guess what that could be.

Hello there, can you give me more info about Danda?

A guess would be he looks like he doesn't talk much or is used to barking out/taking orders.

Doesn't make sense, unless the writer has chosen this style throughout.