When Evil King and Empress Yin came over here to entrust their disciples to Happy and when Happy looked as if he was about to draw his sword and start fighting, Osaya and the old zither player just watched by the side. They did not interfere or join the conversation.
However, both sides ended up ending the conversation peacefully in the end. Evil King and Empress Yin happily left Wan Wan and Hou Xibai behind while they flew together over the mercury moat. This caused both sides to be rather shocked, and they were even more curious as to what sort of method Evil King and Empress Yin used to make Happy agree to take care of the successors of Yin Weed Faction and Flowers Faction. He was practically taking care of his enemies' disciples, after all.
When Evil King and Empress Yin left, Osaya looked away and turned to Happy.