The party finished infiltrating the ruins of the fallen Crab fortress, Haikyo sano Kappa.
The encountered several goblins in the kitchens which Mirumoto Tetsuzae attempted to befriend, assuring them that he meant them no harm and was only interested in freeing them from the warlord they appeared afraid of, Ugu.
Reaching the top of the tenshu they encountered the goblin maho-tsukai, The Exalted Ugu. After summoning a pair of headless samurai ghosts, a man in Hare livery and a Crab woman, he was quickly defeated by a powerful kick from Mirumoto Tetsuzae. The ghosts vanished with his death and Usagi Kamahime was able to retrieve the lost Hare Clan ancestral sword, Kennou.
Upon returning to Hare lands they find that a great number of peasants from outlying areas are traveling to Shiro Usagi seeking protection within the castle's walls. Word has traveled that a Scorpion army is marching on Shiro Usagi.