Narration then focuses on Balor's cell, and it says that his (king's formal) only comfort was that he could slowly shut his smoke there by himself. But then again he wasn't really alone, and on this random day in the past, rude stomping echoes down the stairs leading to his cell. Once again Tezcatlipoca has come visiting, the master of the prison and one of the few people to talk to him. He is also a fellow like him who doesn't leave the prison and has come to enjoy the taste of bitter smoke, bored with his free time.
Balor speaks to Tezcatlipoca in a more casual manner and asks if he really has no one better to talk to than some shitty death row inmate, then comments that being a prison head must not be very involved as he laughs. Tezcatlipoca asks in turn if Balor's fondness for crude speech comes from his time on death row. He then asks if this is out of guilt for the way he imprisoned his own daughter once or for what he did to his own grandchild as he laughs.
Balor sailed right past shock and was quite impressed with Tezcatlipoca as he thought to himself that Tezcatlipoca really does love his paybacks. If Balor were younger and wasn't in chains, he'd have tried to pulverize him right about now. But he is chained now, and there isn't a point in hitting Tezcatlipoca anyway. There was nothing else to do but lament the past with drunken vigor and blab about his past in his home world. Balor then thinks on one subject he's sure he's talked about with him...
In his younger days, Balor was covered in cursed smoke, which is how he got his evil eye. He was both a king and a soldier who always lived on the battlefield. Winners take all, and losers have everything taken. Killing and being killed as a soldier was his pride. On the battlefield, everyone who he looked at with his evil eye was cursed to death. As this kept happening, Balor became feared and hated as a wicked king.
Balor is from the ever youthful land of fairies Tir na Nog, a world where the inhabitants never age. However, Balor has his reputation as the elderly decided upon. He grew facial hair and he subdued younger fae, right? That's how it is in Tir na Nog. The king ages in place of the world that does not age, so eventually a replacement will be needed. The king of Tir na Nog is someone who can be replaced as far as the world is concerned. At some point this time came for Balor too, he who killed all his enemies and bore the fear and anger by himself. Then a prophet decreed to him, "one day a grandchild born to you shall kill you."
This was to happen to him the way he had usurped his throne from his predecessor, the Tuatha de Danann. Slowly the cycle of karma rolled forward, and fearing this, Balor locked his daughter within a tower. But she still found herself a man, and eventually his grandchild was born. He exiled his grandchild Lugh the child of light, who was then placed within a human vessel.
But from far away, Balor thought his grandchild was so cute. He resembled his mother, and he also resembled himself in his younger days. That time when he understood their death for the first time, he had finally realized what it was that he was so afraid of. What he hated was destiny, the determinism that said he would 'be killed one-sidedly.' His grandchild would one day be killed by fate, just as he would be killed by his own fate. He realized it was this predetermined future that he wanted to destroy. He should have shown his pride as a king. He wanted them to see with their own eyes how he would die as a warrior.
Back to the flashback, Tezcatlipoca nods as he says he understands a great deal about Balor's story. As much as talking with him irritated Balor, he strangely got on well with him at the same time. It was Tezcatlipoca who told him what he knows of Mahakala now. He strangely agreed with Tezcatlipoca that war has to be where both sides are killing one another and risk something, except now Tezcatlipoca is gone. After all the battles, all he left behind was a plume of smoke.
Balor watched his last moments through the mirror, laughing out loud with his gravelly laugh of his. It was an all too fitting end for him, he thought. He lived as he pleased, like a daredevil. When he realized what he'd done, all he did was antagonize the one he had in his thoughts. Balor says Tezcatlipoca had no obligation to be cried over by the one he wanted to see while he met his wretched end somewhere. Still, it ought to be fine for him to leave behind a trail of smoke even if he doesn't leave much else behind on the battlefields he lived in. Maybe that smoke could get into someone's eyes so they'd shed a tear at least. Balor says he'll probably be the only one to say it but...it was a good death. He then comments that the smoke on the battlefield is stinging his eyes...calling for him.
Balor says he realized that he still has something he needs to do after seeing Tezcatlipoca's end. There's no longer any point in him fighting his grandchild, but his real wish is still unfulfilled. His pride as a king and warrior and his pride in using the formal king pronoun still smoulder within him.
Balor's narrative flashback ends as the story picks back up in the present with him struggling to control his evil eye as it spews out cursed poison smoke. He staggers around, and the plants he happens to look at during this time wither off. Kengo tells you not to look and to find some sort of cover to hide behind, but he stops in surprise when he sees a bunch of feathers floating around. Narration describes them as the feathers of the sacred bird Garuda, said to give protection against all manner of calamities. The one who shot these feathers jumps onto Balor's back, and the feathers then force Balor's eyelid closed.
Avarga pants and sighs about how shutting Balor's eye is always a lot of work. Balor thanks him and says that it's a bother how Avarga can't just open or close it on command either. Back at Tir na Nog it took four other giants to do that for him, and Balor laughs that he was getting close to killing everyone else around too. Avarga says that Balor uses profanity a bit too much, but adds that he doesn't hate it as he laughs too. He decides that's enough small talk from him and says he'll wait from the back, then steps away.
Balor turns back to you guys and apologizes for keeping you waiting. Kengo is taken aback at how huge he is and asks if he's Balor. Balor confirms that, then casually adds that some call him the king of Tir na Nog. He is also one of the 23 World Representatives, just like Tezcatlipoca whom you've fought with. You either tense up a bit as you comment on him being Balor, think on what he said about being king of Tir na Nog, or gulp. Balor mentions that Tezcatlipoca talked about what you did this loop to the point of annoyance, but Kengo interrupts to say he doesn't care and asks if he really knows about Mahakala. Balor is surprised by this, and you plead for him to tell you where Mahakala is so you can find Mononobe.
Balor laughs and says he feels sad even if he knows why, what with you immediately asking him about Mahakala as soon as you meet him. He's so mad and put off by this that he says he doesn't feel like telling you anymore. Kengo is shocked by this, and Balor asks if you know that all the World Representatives want to settle things with you. Plus, Balor's known as a tyrant in Tir na Nog, so it'd only be natural that he be mercurial. So what are you gonna do about? Gonna beat him up and make him spill what you want to know? You don't stand a chance against any of the World Reps you know. But maaaybe you could win against him if you pull out Dual Heaven Dragon on him.
Kengo is less than thrilled that Balor is already aware of your ace up your sleeve and asks what you want to do. You start stepping forward to his surprise, then bow your head to Balor and beg him to tell you. Both Balor and Kengo are surprised by this, and Balor asks if Mononobe, who has been cobbled together with Mahakala now, is that important to you. You talk about how Mononobe helped you with a bunch of things since you've transferred in and that you think of him as a parent even though you don't know your own. Because of that, you want to help him like he helped you, because you can't accept this all being one-sided.
Balor quietly comments on you not liking things to be one-sided, and
Kengo decides to follow your lead and bows, offering to do anything for
Balor if he'll tell you what he knows. He calls himself your partner, so
he can't let you be the only one bowing to others. You either express
shock or thank him. Kengo sighs about him doing this when he used to
only care about fights, but he's changed since meeting you. Not that
it's a bad thing. Balor seems a bit touched, but before he can say any
more he senses something. It takes you a moment after him to pick up on
something coming too. Balor glares at the approaching presence, and the
world itself seems to tremble.
Balor is annoyed that someone has come now, and that it's Shiva of all people. The bug mobs all call out orders to withdraw from the battle zone, and that they should drop all their stuff and get out of there even one second faster. All mobs start retreating as they know what's about to happen. Like, what kind of person would stick around in a place they know a volcanic eruption or earthquake is going to hit? What's coming is on a level beyond that, a calamity that can destroy the world.
Shiva stands before you guys silently, and you wonder who he is. He's described as having three eyes, but the one in his forehead is sealed. Even so, a little bit of his power leaking out is enough to cause the world to scream out loud, as if the world was in its death throes in destruction. Balor asks Shiva why he's there, saying it's too convenient or maybe inconvenient before asking if someone put him up to it. He thinks on this out loud and figures out that Bertro must have done it.
Back at the Warmongers' HQ, Bertro cackles that as big as the 24 worlds are, no Transient that can destroy the world exists. He's glaring in this direction as he sits on his robo wolf, and he talks about how the scale and magnitude of possible destruction is different. Bertro then talks about Shiva and how he can obtain the power to destroy the universe, then laughs about how he is the only one who can fight against Balor.
Anyways, back at your end Balor actually greets Shiva properly at this point as he asks how many loops it's been since they've talked. Shiva greets him back and remembers about that time they fought against each other. It was a good fight back then, and he's glad to be able to fight him again. Balor doesn't comment on this, so Shiva talks about how he was told he and Tezcatlipoca broke the agreement between the guilds. He confirms Balor's suspicions that the guild sent him to punish Balor, but he offers to listen if Balor has an explanation. If he doesn't, they can just fight it out. Shiva also assures Balor that he won't kill him since as an ascetic monk, he just wants to climb to greater heights with his fists.
You wonder about Shiva being a World Representative and comment he seems more approachable compared to the others, especially Tezcatlipoca. Balor says that would be true were Shiva to talk with anyone Besides You. You get confused at this and ask what he means, but Shiva takes notice of you around this point in shock. He suddenly starts giving off a heavy will to kill that you are taken aback by when you sense it, and Kengo tries asking what the deal is with that.
Balor talks about how you have the memories of the 23 Exiles within you. Some were people who were sealed away, some were people who lost a duel, some were driven out by the law, and other such fates. Shiva however is probably the only one who can one-sidedly and utterly destroy your body without leaving any traces left. Balor thinks for a moment, then addresses you and Kengo as he tells you guys to not think about trying to fight and buy time. If you guys agree to that, then he offers to step up as king and try to do something. When he gives the sign, you two should run away as fast as you can. You are surprised he would do this for you since you guys just met.
Balor sadly acknowledges that for you, you guys just met each other. Still, even though you don't know anything yet, he mentions that there are people who are happy that you were born. There's no time to talk any more on the subject as Shiva rushes you guys, starting the episode battle. More story happens after that.
Narration picks up after the battle to talk about Deva Loka, which is one of the worlds connected to Tokyo and is attempting to make itself eternal through reincarnation. Reincarnation is the cycle of death and rebirth, the transmigration of your soul into a new life. That is to say, the brahman and atman are one, so even if the world is destroyed along with your body, your self will continue for eternity.
The ascetics of Deva Loka are those who train their minds and bodies to control themselves for the goal of reaching nirvana. Letting go of all desires is the only desire these ascetics have, but in the past there was someone who left the attachment to love within Shiva. That would be the person who once ruled over all of Deva Loka and rode on the water beast Makara. He was the person who gave his last attachment to Shiva before disappearing, and he is the one once known as Varuna. Eventually he degraded to being the one who ruled only love, Kamadeva. Eventually he left behind even that bit of power alongside his steed Makara and disappeared from the world. But even now, this attachment that Kamadeva shot into Shiva is stuck with him to this moment still.
Back to the present, Shiva is screaming and ranting at you about never forgiving you for giving him this worthless desire. With the pact broken, he's now going to take this opportunity to burn you to nothing and he leaps forward with a yell. Kengo tells you to run, but you see that the ground itself is cracking from Shiva's sheer power. Balor says that if Shiva had opened his Third Eye, things would be worse than this. But thankfully he's gotten enough time together to cast his NP at Shiva, and his smoke starts trying to seep into Shiva's eyes. Balor then laughs and tells you to run without looking back as fast as you can. You however protest that he hasn't told you anything about Mahakala yet.
Balor decides to tell you that Mahakala 'does not exist in this world,' and that it's the name for Things That Shouldn't Exist Yet in Tokyo. You are baffled at this since Mahakala did tell you his name back when you met him when he possessed Mononobe. Balor explains that he's not saying he doesn't exist, but specifies that Mahakala Does Not Exist in Tokyo. He then prompts you to remember what Mahakala did and said to you.
Balor says you should have seen a lot of things similar to him up to this point. The same reason applies to him for why he can't come here, so that's why a bunch of people are creating a System. It's a System meant to establish His Existence in this break in time in Tokyo, which means Mahakala is the name of both That Being and the name of the System meant to create him. You then ask if he's saying Mahakala is the name of a person and a System.
Balor confirms that to be the case and is glad you're quick to understand. He then adds that as soon as Mahakala actually manifests, nothing will remain of Tokyo. You ask Balor about why that'd be, so Balor starts telling you that the Warmongers have two things they call their ultimate weapons. The first of them is Shiva, but Balor notes that he's still Incomplete. The second one is something that the Warmongers are planning on deploying this time. Since Shiva is here in Ikebukuro, the other one must have been deployed at Kabukicho since the two ultimate weapons cannot be allowed to clash with one another. If you want to know more about Mahakala then you should go over there, and Balor wells up with the majesty of a king as he looks at you.
Balor says he can't tell you anymore, so you should see the future you want to grasp with your own eyes. He then drops the kingly persona and tells you to leave unless you want to be killed by him since he can't hold back anymore. You thank Balor and ask him not to die. Kengo says he'll carry you and run, then activates his NP. Before he goes, Kengo apologizes to Balor and swears to repay him one day. Then he uses his thunder boosted abilities to run off with you in his arms.
Shiva gets back up or whatever and asks Balor if he let you leave. Balor is surprised at how well Shiva can move while trying to avoid his all-killing eye, then asks if it's the result of his training while shutting his third eye and the power to destroy the universe. Alternatively, Balor asks if it's actually because Shiva is afraid of opening his third eye and confronting his true desire. If that's the case then even if Shiva is praised as the strongest among the 24 worlds, then he really is nothing more than a cog for Mahakala. He laughs at him for being an immature little punk, which pisses Shiva off enough to lunge at him.
You and Kengo run along the wall to make your escape. Eventually you make it to the gate at Kabukicho, which is noted to be a ruined battlefield like Ikebukuro as the episode ends.