Fushi finds himself ensnared by the mysterious Tonari, who pushes him into a arena battle royale before he even knows what a battle royale entails. Once he realizes it’s kill or be killed, he decides not to kill, and since he can’t be killed, he ends up winning when the last non-immortal fighter standing passes out from a hangover.
Fushi wins the adoration of the crowd, as well as an entourage in Tonari and her young friends. In the episode’s very expository second act, Tonari and the others explain The Way Things Are on this prison island now essentially run by the convicts. The island burns through chiefs, but Tonari sees potential in an “eternal” chief to bring some kind of stability and dignity to her home.
Fushi is mostly disgusted by this island full of death and enslavement, and wants nothing to do with Tonari and her pals who he says aren’t “normal” if they can laugh, smile, and joke in such a place. He asks the Creator to take him to Pioran, but the Creator won’t do anything for him that won’t help him grow.
The creator tells Fushi that a plain fact of living with mortal humans is that sometimes they’ll choose how and when to die, as Gugu did, and as the arena combatants do. Fushi can already be said to have caused the deaths of many humans so far, so what’s a few more who have already chosen to die? As for one life he wasn’t able to take—Hayase of Yanome—she’s on the island, and marks her quarry in the night by licking his face.
The day of the second round of the arena tournament, Fushi has little interest in participating despite Tonari’s prodding. He turns into his dog form, accidentally kills a mole, then becomes the mole so he can dig underground. But he’s snatched up by an owl and dropped right in the middle of Tonari’s posse.
Forced into a one-on-one battle, Fushi tries to intimidate his opponent, but as the Creator told him, that opponent has already decided on only one of two paths: victory or death. Neither becoming a wolf-dog or a flame-spitting Gugu has any effect. That’s when Fushi suddenly remembers Parona, transforms into her (despite her still being alive, as far as we know), and is amazed at how light and nimble he’s become.
He’s able to defeat his opponent and move on to the third round. The crowd goes while, and Hayase licks her chops in preparation for a confrontation in the near future. Whatever Hayase’s intentions, Fushi is about to be tested like never before, as the Nokkers have surely followed him to this island. They’ll either take more of his memories and forms, or he’ll reclaim the ones they stole.