Yuji and Nanami deal with the curses at Kinema Cinema and learn they may not be cursed spirits after all. They discover that a powerful cursed spirit used its power to transform humans into unsightly beings. Meanwhile, the culprit, Mahito, and the only known witness, Junpei discuss the origin of curses.
Nanami explains that his ability creates weak points on his enemies that he slash apart, even with his bandaged blade. He asks if the young Yuji is paying attention, but he's trying to focus on the enemy curses. Nanami adds that revealing a technique to an enemy, the power can improve based on the conditions. Using the back of his wrapped-up blade, Nanami strikes the exposed points of one of the curse.
Once one curse is dealt with, Yuji focuses on the other. He recalls training with Gojo sensei and learning from him that his cursed energy has a slight time-lag. Gojo taught Yuji to utilize the time-lag in order to make one curse-infused punch into a double-impacted strike called "Divergent Fist".
Using his newly developed signature move, Yuji annihilates the remaining curse with a punch reinforced with the twin-impact of his cursed energy. Nanami silently takes notice of Yuji's incredible potential and admits he understands why Satoru Gojo took him on.
Nanami suddenly realizes something isn't right about these curses and decides to take a photo of them, which they show up in. He tells Yuji to stop attacking and shows him the photo. They report their findings to Doctor Shoko Ieiri and learn that these are ex-humans that have had their bodies transmogrified by cursed energy.
Both victims were killed from the shock of their modification and were somehow granted the ability to use cursed energy like a cursed spirit would. The doctor assures Yuji that he's not responsible for their deaths after explaining all of her findings.
Yuji is upset by their deaths regardless, drawing Nanami's interest. Nanami surmises that the residuals from the movie theater were meant to draw them out. He states that their enemy is skilled and the coming mission won't be easy. Even so, Yuji and Nanami head out to put an end to whoever did this.
Meanwhile, in the sewers deep beneath Kawasaki City, Junpei meets with the culprit. The cursed spirit who transmogrified the victims, Mahito, explains to Junpei that his kind are born from humanity's negative energy. An image of fear shared by many people can give birth to "imaginary vengeful spirits" but Mahito comments that this system is shallow. Mahito claims people fear natural disasters the most and the negativity directed at them created the powerful cursed spirits whom Mahito calls his friends.
Junpei asks what was Mahito born from. Mahito replies that he was born from the hate people feel for one another.