BY remarks at SL’s luck, to have the indifferent RY intervene. While SL knows that RY only acted for the dragon. LYX arrives, to see the miserable LAQ. RY berates them for almost starting a war with the dragons.
695 LYX tries to negotiate for RY to hand over SL since he’s only interested in the dragon. The dragon, sensing his animosity towards SL, attacks. LYX and the dragon are equal in strength (8th ranked martial artist and 7th ranked beast). With his speed, the little dragon manages to bite the space between LYX’s legs but can’t find anything. LYX tries to pull him off, ripping the fabric in his pants.
696 LYX attempts to cover the area with his hands, earning laughter from the crowd. He calls for SL to take the dragon away, but she refuses, knowing LYX can’t do anything to it. The dragon bites his finger when he attempts to bat him away, and LYX forgets to cover himself in the pain. The crowd, especially BY, laugh as they realize he’s actually a eunuch.
697-698 LYX goes into a rage, since he and his wife had kept this a secret for several years. When NL’s stooges comment on the dragon and try to pet it, but it shrinks back in SL’s arms. They notice RY left after knowing LYX wouldn’t harm the dragon, and SL is glad he didn’t take the dragon from her. SL remarks on her luck (being the dragon’s master) and leaves.
699 LAQ and LYX head back, while hiding their shame, but thanks to the Beichen gossip machine, everyone between 3 and 80 knows that LYX … has nothing to hide and speculate over LAQ’s birth. They urge the Emperor to send an Imperial decree but it has little effect.
700 BY continues sending rumours surrounding the Jade Lake including LAQ's paternity, but it eventually gets buried over time and with the emergence of rumours of RY’s arrival and speculation over LYY as a potential disciple. SZ receives a letter from LYC to have SL struck from the family records (same as SW). He hesitates and decides to see how the situation between LYY and RY plays out.
701 At the palace, LYY and the Emperor greet RY. When LYY pours tea for RY, the Emperor sees this as a sign that RY has implicitly agreed to be her master, and doubts NL’s boast that SL’s potential will eclipse LYY’s in the future.