Chapter 1: Hanako-san of the Toilet

The rumor about "Hanako-san of the Toilet" circulates around the school and Hanako mentions how he wishes that someone would come soon.

Yashiro makes her way into the bathroom following the rumor's instruction of going to the third stall, locking the door, and knocking upon it three times. She finishes with asking, "Hanako-san, Hanako-san, are you there?" To which Hanako answers and Yashiro screams at the sight of a boy in the girls' bathroom. After Yashiro's hand passes through Hanako's body, he explains that he is the third generation spirit of "Hanako-san of the Toilet." Yashiro asks why Hanako is a boy to which he explains that there were no other volunteers and it is not a popular position. He also explains that there had been more supernatural activity in the girls' bathroom and that's why he's there also that it's too much of a hassle to change the name.

Hanako asks for Yashiro's name and what her wish is. Yashiro wishes to curse death upon her first boyfriend who, she caught cheating on her with another woman. When Yashiro asks why he was with the woman when he told her that she was the one he loved the most, he answered by saying that he was just playing with Yashiro. He also mentions that he could never be in a serious relationship with someone who had radish ankles like her. Yashiro breaks her composure in front of Hanako shouting about how her ex-boyfriend is a "leg pervert." Hanako understands her wish but hesitates and Yashiro believes he will try to stop her murderous thinking however, Hanako only mentions how he only has a kitchen knife. He makes his way to the roof where the victim of Yashiro's wish is but Yashiro runs to stop him. Hanako only says how he has more of a domestic style so he can't change weapons and Yashiro asks if he's going to try and stop her. Hanako simply asks why and if she wants him dead to which Yashiro says yes. Hanako passes through Yashiro and she runs up to the roof.

Yashiro says that she still can't forgive her ex but that she still loved him enough to not want him dead. She arrives at the rooftop and tackles the ex- boyfriend in question instead of Hanako. Yashiro comes to the realization that there was no way that Hanako could kill humans because his knife could also pass through a person just as Hanako does. She mentions to Hanako that the rumors say that "Hanako-san is the guardian of the school" and he clears the misunderstanding saying there could have been a mix up over the years. Yashiro's ex boyfriend asks why she is talking to herself and calls her "disgusting" to which Yashiro angrily asks to "express her love." Yashiro then beats her ex-boyfriend till he is unrecognizable while other witnesses flee the scene with fear of being the next victim. After Yashiro finishes her beating, Hanako says that he's glad Yashiro came to stop him and that if she ever had anymore trouble, she could come to him. Hanako asks Yashiro is she will ever use the bathroom in the future and Yashiro shoots his offer down.

It's revealed that Kou was spying on Hanako from a nearby roof calling Hanako a "monster." He starts to promise on his grandmother's honor that Hanako would be exorcised by him but is interrupted by someone telling him to get down because it's dangerous. Kou says he would get down but not before warning Hanako (who was too far away to even hear) that he would strike soon.

Nene has been cleaning toilets in the week since she became Hanako's assistant. She asks Hanako to let her go for today, so that she can go on a second date with Fuji, though the "date" is really for Nene to compile Student Union paperwork alone. Hanako refuses, and points out that Fuji is merely using her. Nene says that she'd rather tidy paperwork alone than clean toilets with Hanako, until Hanako declares that he's going to buy fish food (implying that he'll turn her into a fish).

The next day, one of the hakujoudai monitors Nene, while a dark shape watches her from behind. Nene's books, stationery, and brooch suddenly disappear during class. Afterwards, Aoi tells Nene about the rumour that Faeries are responsible for things disappearing, but your life will also be taken if you look at them. Though Aoi dismisses it as mere rumour, many things have gone missing, including a sports towel, Akane's Hanitaro, and even the locker doors. Aoi then accidentally drops the watering can on Nene when something knocks into her. Nene flees to the old school building so that no one will see the scales, still followed by the hakujoudai. She spots a towel to dry herself with, followed by a trail of the other lost items including her own, and ends up seeing the Faerie, who attacks her. 

Hanako arrives just in time to save her, using the hakujoudai to scatter the Faerie into many small rabbit-like shapes. He introduces them as the Mokke, weak supernaturals who do small thefts and pranks, gathering in large numbers and transforming on being attacked. Though the Mokke would not naturally hurt people, they had no choice due to the change in their rumours. Hanako asks Nene if she is willing to help change the Mokke's rumours so that he won't have to eliminate them (as would be his duty in the Seven Mysteries), and the Mokke apologise to Nene, expressing their wish to continue staying. Nene agrees to help, as they remind her of White Inferno, a white hamster she used to keep. She also thanks Hanako for the two times he's saved her. 

Heading up to the rooftop, Hanako asks if Nene really hates toilet cleaning that much, and says that he's been looking forward to it: doing things and chatting together after school, which he finds nostalgic, like having friends. Nene says she'll call him "Hanako-kun" from now on, since it's more friend-like. Hanako looks surprised, then smiles before asking about the rumours Nene plans to spread.

Later, two students are discussing lost items and the Faerie rumour when Nene comes up to them with sweets for them to carry, which will keep them safe from the Faerie. Nene then says she has to go to a friend's place, making the students wonder when she enters the toilet. Meanwhile, the Mokke are happily carrying their sweets, but several of them bump into Minamoto Kou, who asks if they know Hanako. When the Mokke run away, Kou declares he will search for Hanako himself and exorcise him.

Nene and Hanako are on the rooftop when Kou appears. Hanako says that Kou is able to see him because he is a descendant of the exorcist Minamoto Yorimitsu. Kou confirms this, and attacks Hanako with the spirit staff, shocking him with lightning. Nene jumps in front of Hanako to stop Kou before he can attack again, introducing herself as Hanako's assistant and friend. She insists that Hanako isn't a bad supernatural as he's saved her before. Kou tells her that Hanako isn't a simple supernatural, but instead a deeply evil spirit that his grandmother was barely able to seal away, and the kitchen knife is proof that Hanako had killed someone with it when he was alive.

Nene reacts in disbelief as Kou tells her not to trust Hanako. But before he can continue, Hanako aims the knife at Kou's neck while holding on to Nene with the other arm, seeming disappointed that his secret had been exposed. Calling on hakujoudai to materialise his cape, Hanako admits that he has murdered someone, but also that his sin would be erased if he fulfils his duties, so he cannot let himself be exorcised. As they fight, Hanako catches Kou's hand and asks if it hurts, which allows Kou to use the lightning again. However, Hanako seems unaffected this time, holding on to the staff and offering to let Kou escape in exchange for it. When Kou refuses, Hanako simply lets go, causing Kou to overbalance and fall backwards. Hanako pins Kou down and brings down the knife, but only flicks Kou's ear instead, declaring it his victory. 

Hanako seals the staff as it is dangerous, and turns Kou's palm around, revealing that Kou has also been shocking himself every time he uses the lightning. Hanako says that Kou will be an excellent exorcist someday, and that he's looking forward to it (to Kou's confusion). Then he adds that Kou's still weak now, and knocks him unconscious with a punch. Nene asks if he's alright, and if they should hide the staff for the time being. Hanako asks if she's worrying about him, and she says of course, since they're friends. Hanako comments that Nene can be friends even with a murderer, but then dismisses it as a joke, and says that it's alright to leave Kou be.

At the end of the chapter, the Misaki Stairs rumour is broadcast.