After weeks of exchanging fire and gun battles across the streets of Mippei Yosai, resulting in the deaths of roughly half of the ESF invading force, Major Eidolon finally retreated and ordered all remaining forces to regroup to his location, in an area that would later be known as [[Intersection 02]], to prepare a new plan. Over the following days, every single youkai town received the visit of Captain Hashimoto, ordering the mayors of each town to raise a militia of their own, and assist in the counter-attack. This was known by the youkai as ''Operation Scarlet Sakura''.
Before Eidolon could relaunch another assault, Hashimoto's forces, now 500 strong, assaulted Intersection 02. Encircled, severely outnumbered, and entrenched into the little intersection's streets and shop emplacements, the ESF's last 50 soldiers mounted a final stand, but the overwhelming amount of youkai forces caused Eidolon's soldiers to fall one after the other until about fifty human soldiers were left. Eidolon requested a ceasefire and parley with Hashimoto; the meeting was agreed upon, in the center of Intersection 02. Hashimoto demanded unconditional surrender, Eidolon simply asked for his life and safe passage out of the Northeastern Zone so that he and his surviving forces can return to Neo Khazrun, to which Hashimoto agreed. This agreement officially ended Operation Shining Blade, resulting in a youkai victory.
Upon their return to Neo Khazrun, the battered Eidolon Silver Force found an angry, hostile population. A new mayor had been elected in Eidolon's absence and they announced that although his soldiers are welcome to return home, the Major himself had been disgraced, and exiled from the town. Eidolon was forced to leave Neo Khazrun, vowing to return with a fighting force once more. He was never seen again.