Kantarou is busy expelling demons from people and they wonder about the sudden outbreak.  They discover that it has been happening as people watch a folk singer tell her tales of the demon-eating goblin.  The apprentice of the singer takes a liking to Haruka and he uses that to get a private showing.  Kantarou and Haruka arrive with Sugino and Muu-chan and discover that the girl that likes Haruka has been possessed.  The folk singer sings a balled only for goblin's ears and Haruka begins to remember his past.  Sugino wants his memories restored but Kantarou is not sure that he does, especially since it would require Haruka to kill the demon possessed girl.  In the end, the girl's love for Haruka and his feelings for her stop the spell, but not before everyone learns that Raikou is behind the whole thing.  Raikou family has fought monsters throughout their line and the demon-eating goblin is the only one that has beaten them.  His goal is to restore Haruka's memories so that he can kill him in a fair fight.  After the spell is broken, Raikou and the rest disappear.