Following 4th Subdivision leader Xia-Long Miao's defeat at the hands of Fang Fang Huang and Yukari Sendo, Fang Fang attempts to convince Xia-Long to become their friends and desert Fairy Tale. Just then, Gairen Yuki appears and reminds Xia-Long not to follow in the steps of his father (who was brutally punished for disobeying orders). Xia-Long breaks into a rage, asking Gairen how he knows about the incident regarding Xia-Long's father. Gairen does not reply; instead, he melts all the pillars in the room and ominously tells Xia-Long that all "those who betray him await a gruesome death". The entire ceiling collapses upon Xia-Long, Fang Fang, Yukari and Routier.
Though Gairen appears to be just another Subdivision leader serving Gyokuro Shuzen, he is in fact a direct disciple of Masked King, founder and leader of Fairy Tale. He appears to know a lot about events only known to Xia-Long and the Masked King, such as the Masked King brutally stuffing Xia-Long's father into a briefcase for signing a truce with the Huang Family without his consent, and the Masked King's subsequent warning to Xia-Long.