After getting a 'go get'em' from Rammie, Yuji abandons Yoshida in order to look for Shana.
Meanwhile Friagne has more one-sided conversations with Marian, outlining his plan. He intends to leave Rammie to Majorie, and deal with Shana herself. The idea is to distract both parties so that the city devouring can take place.
Yuji sees Shana immediately as he exits the museum, so he tells her (And Alastor) his newfound information. On the way back, they meet Yuji's mom, who asks him who Shana is. Yuji dismisses her has 'just a classmate', which infuriates an already mentally unstable Shana.

Urusa- oh, nvm.
A series of flashbacks show that Shana is mad because despite Yuji giving her a name, he referred to her as 'just a classmate'. As Yuji continues to talk, she becomes infuriated to the point where she puts on her yogasa and calls forth a Fuzetsu. Shana then proceeds to point her sword at him, and is about to cut him when Alastor(?) stops her. Before anything can be said, a black Fuzetsu appears in the distance, signaling Friagne's appearance. Shana leaves to investigate, leaving Yuji to wonder what time of the month it is.
The fight is pretty one-sided, Shana charges with her sword like always, leaving Friagne to use whatever tricks he has. This time it's a bell, and when he rings it Shana is blasted by a good number of energy balls. Pan back to Yuji, who is worried about Shana despite almost getting killed by her. He chafes at his own uselessness, but recalls Rammie's words of wisdom. Heading to where Shana and Friagne are, he arrives just in time to yell at Shana to step back, saving her from certain annihilation. However, Friagne grabs Yuji by the neck (Ouch.) and flies off, telling Shana to chase after him.
Short scene with Majorie and co, but we don't really care so back to the main story. As Friagne conducts pointless banter with Yuji, Shana appears rather triumphantly, but gets her living daylights kicked out.

Durrr hrr. Friagne using his bell.
As Yuji hopelessly looks on, he tells himself that there MUST be something he can do to help. Although that'd be a great culmination for Super Saiyan transformation, he ends up just doing what he does best - warn Shana of incoming dangers and obvious traps. To her dismay, Shana still automatically reacts to his commands. (Well you'd be dead 10 times over otherwise, so I don't really see the problem.) Despite the situation looking hopeful, Friagne says he'll get SRSLY and shortly after the entire area explodes on fire. Friagne then proceeds to ring his bell, apparently signalling the activation of the city devouring spell.
This alerts Majorie, who had set up a network of spells to try an catch Rammie. She's forced into action, since Friagne's spell renders all of hers useless. Meanwhile, as Friagne delves further into dementia, Shana shows up. Friagne appears not to notice, so Marian leaves his side to lanch a suicide attack against Shana. Yuji, who is climbing up a ladder nearby, wonders if Friagne brought Shana up to the roof to conceal the start of the city devouring spell from her. As Yuji muses, Friagne decides it's finally time to dispose of Shana.

Hougus, they never cease to amaze.
Yuji appears to yell Shana's name, but she collapses, and Yuji gets most of his torch light sucked out by Friagne. (Somehow I'm not too worried.) C-c-climax with Shana down, Yuji yelling her name, and Friagne about to pull the trigger. Under Yuji's goading, Shana picks up a piece of glass and flings it (With precise accuracy) at Friagne's hand, cutting off his fingers and causing him to drop his gun and the bell (The latter breaks. Those Hougus, pretty fragile aren't they?), as well as a ring on his finger (Which appears to be of some significance, since Yuji picks it up.). Uh oh, things are lookin' bad for Friagne. He's pretty hell-bent on killing Shana, so he picks up the gun with his other hand, only to have it knocked aside by Majorie.
First useful thing you've done so far.
As Friagne strokes where Marian should be (He still hasn't noticed that she's gone.), he says that he cannot be defeated. He initiates magical flight mode, and Shana moves to intercept.

DEE BEE ZEE battle!
Of course, Friagne loses out, and he says Marian's name before disappearing. (That was pretty disappointing.)
The aftermath of the battle shows Shana and Yuji sitting back to back. Yuji's opacity is at 80%, and it's pretty clear he's about to disappear. Yuji and Shana both apologize, and Shana puts her hand onto Yuji's. (Awwh.)

Opacity 50%
However, just as he is about to disappear, the clock tower rings midnight. At this, Yuji's flame re-ignites, making his opacity 100% again. Yuji is definitely surprised, but Shana and Alastor seemed to be expecting it, and they tell him that his Hougu is Reiji Maigo, which is apparently super-special-awesome-rare.

Infinite existence generator, defying conservation of matter/energy.
Reiji Maigo's power is to fully recover the power of existence used that day at midnight. Isn't that handy?
Thoughts:
Evidenced by the screenshot placement, most everything happens towards the end of this episode. Now that Yuji knows his Hougu and Friagne is defeated, who knows what'll happen next? I'm a bit disappointed at Friagne's fall, since they'd put him up as a pretty powerful Guze no Tomogara. Well, such is the fate of the first villain, I guess.