: Rumors spread about "Yousei-san" (faeries) who steal small items. According to the rumor, if you see them, they will take your life.

The episode also introduces , a junior high student from a famous family of exorcists. He arrives at the school intending to exorcise Hanako, viewing all supernaturals as inherently evil. His confrontation with Hanako begins a major character arc where he learns to differentiate between benevolent and malevolent spirits. Series Context Jibaku Shounen Hanako-kun Episode 2: Yousei-san

: This episode establishes a core rule of the series: supernaturals are bound to the rumors spread about them by humans. Because the students' rumors had turned the Mokke into murderous "Yousei-san," the Mokke were physically transforming into monsters to match that narrative.