Heater vent removal clean-up

[LoneJeeper]

The previous owners of my house had some kind of gas fireplace or propane heater or something. They vented through the living room wall to the deck. When they removed it, they covered the interior wall hole with paneling and left the exterior hole in place, with the vent cover, stuffed full with bathroom towels.

What's the appropriate fix for this?

My first thought is to fill the hole with insulation and replace the vinyl siding to cover it. Should I do more?

 

[user 4883]

reinstall the appropriate paper backed instulation (R-factor) based on the wall stud thickness. Install a drywall patch and sand to finish if the paneling is coming down. Reinstal the exterior sheathing and then seal up the seams with caulk and then cover with vinyl siding to match.
Chances are they just did a quick patch job being they wouldn't have to deal with after the sale.