As the competition progressed into the later morning and early afternoon, the number of participants dwindled rapidly. The initial chaotic flurry of matches gave way to more focused duels between stronger opponents. Kai continued his winning streak, his name steadily climbing the ranks displayed on a large board near the main pavilion.

  He faced opponents of increasing strength – mostly Qi Condensation Level 5, occasionally a Level 6. Against these more challenging foes, he could no longer rely solely on basic technique and gear advantage. He started channeling more Qi through the Azure Cloud Qi Manual, his strikes carrying more weight, his movements becoming faster and more decisive.

  He still avoided overtly using the Combat Assistance Module to save points, but his own Level 6 cultivation, combined with the subtle edge from his gear, was usually sufficient. He won a match against a Level 5 disciple specializing in earth-based defenses by constantly circling him, using the bokken's lightness for rapid feints and strikes, eventually finding an opening and ending the match with a firm strike that forced a yield.

  Against a fellow Level 6 disciple known for aggressive fire-attributed attacks, Kai adopted a defensive strategy, using his padding to absorb the weaker peripheral heatwaves and his agility to evade direct hits. He weathered the initial storm of attacks, letting his opponent expend Qi, before launching swift counter-attacks during momentary lulls, eventually disarming him.

  His fighting style was seen as pragmatic, efficient, perhaps even a bit boring compared to those relying on explosive techniques. He rarely wasted movement, his attacks were precise, and he capitalized clinically on openings. Yet, his consistent victories against increasingly strong opponents couldn't be ignored. He was clearly a serious contender for the top 10.

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  Occasionally, when faced with a particularly tricky opponent or wanting to end a match quickly to conserve stamina, Kai would employ a minor system item, always disguised and used subtly. Facing a disciple whose defensive technique involved creating mirror images, Kai casually tossed a small pellet onto the arena floor.

  Activate Flashbang Pellet (Disguised as Blinding Light Talisman)! Cost: 15 Points.

  The pellet erupted in a silent, brilliant flash of intense light. Kai, anticipating it and shielded slightly by his own arm, was minimally affected. His opponent and his illusions, however, were momentarily blinded and disoriented. Kai stepped forward and delivered a gentle push, sending the blinded disciple stumbling out of the arena bounds. Victory, achieved quickly and with minimal Qi expenditure, attributed by onlookers to a clever, if slightly unorthodox, light talisman. [System Points: 45 - 15 = 30]

  He carefully managed his energy, taking sips of water (sometimes subtly enhancing it with a drop from a diluted 'Stamina Potion' vial - minimal cost) between matches and using the 'Numbing Dew Spray' on any minor bruises to prevent them from becoming distractions.

  By late afternoon, the field had been narrowed down to the final sixteen competitors. Kai had secured his place among them without revealing his Lightning Wand or the full extent of his capabilities. His name was now frequently mentioned alongside the established Outer Sect elites like Zhao Feng and Li Wei. He was no longer an unknown quantity but a recognized force, a dark horse who had galloped surprisingly far. The next round would pit him against one of the seeded players, his first truly significant challenge.