Act 3: Trail of Blood

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The three companions journey onwards. They follow Hermit's instructions and reach the next town where they meet a girl, Bird, wandering around at night  time. Sense wonder what she is doing roaming the streets in the middle of the night Bird greets them and volunteers to show them around town. Sense becomes very suspicious of her behavior however May insists that Bird is simply being "friendly" Bird then takes them to a deserted area of the town where she suddenly turns hostile and attacks. Bird is fought and defeated.
The trio becomes aware of the gang Hermit mentioned. They learn that Bird is one of the members of the gang. As Shadow becomes stronger  and stronger by fighting the tournament fighters and completing challenges in town, he takes down the gang members one by one. Each gang member reveals a bit of information about themselves and their relationship with Butcher. They reveal that some members were raised by Butcher from childhood. They also say that one of the members was apparently saved as an orphan by Butcher. They also reveal that Butcher is a murderer and that in fact he was the one responsible for the murder of the orphan's parents.  He then seemingly rescued the orphan and trained him to be one of his own servants.
Sensei is disgusted and says that Butcher's group was much worse. It was not gang but basically a private army.  Shadow then faces Butcher.  Butcher gloats that he made the gang members strong by sharing  his teachings with them. He reveals his beliefs that the gift of violence is the key to strength, and that is why he has taught his gang members that way the fight begins. When shadow proves to be a tough adversary Butcher unleashes his stronger attacks such as his shockwave. Generating ground slam and advanced magic spells. However,  ultimately, Butcher too is defeated.  Shadow collects Butcher's seal.  The three companions are then forced to continue on their journey. Their path leads across water for which they require a boat. May recalls that Sly had said he had a boat. May recalls that Sly had said he had a boat waiting for him in the harbor, and suggests that they should hurry and catch him before he leaves.

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