The Sacred Blade of the Azure Dragon, Guardian of Martial Virtue, betrayed the Great Han Dynasty, causing shocks within the dynasty. That very night, Emperor Liu ordered the execution of Liu Xuan and Zhang Fei, who however fled before they could be caught, making the Han military efforts futile.
Their desertion was quietly applauded by various forces of the Human Clan. Within the Human Tribe of the Eastern Lands, the Great Han Dynasty was the most likely to become the Holy Dynasty. The strength of Liu Guanzhang was formidable, and their departure was akin to severing an arm of the Great Han Dynasty.
The Demon Clan did not show much reaction because they were embroiled in internal strife.