Be very aware of where Myzerian is flying: he can see right through the stealth and will kill players quickly. If attacked, know that he is unkillable.
The easiest way to do this without dying is to land at the southwest corner of the area. Myzerian won't be close enough to see you. Wait until he passes, then use the cloak and take out the three kegs in front of you. Retreat back to the corner. Wait for Myzerian to pass again, then mount up and fly behind the entrance of the Chamber of the Moon (southeast section), to the back corner. Wait for Myzerian again, then take the four kegs at the camp in front of the entrance, taking care not to aggro by passing too close to the troopers.
Immediately after the last powderkeg is sabotaged, a cutscene will unfold showing the devastation that occurs.
Only after completing this quest is Myzerian killable, as he has much lower health and no regeneration buff.
Notes
One of many Powder Kegs scattered through the encampment.