To begin it, teleport to the A Rank Tournament Reception (Festival Plaza).
Afterwards, leave the building and turn to the right (North).
You will stumble upon Yagura.
During the conversation you will learn that you have to find his companion - Utakata.
Go to theFestival Beach (B Rank Map).
Locate the Employment Office (to the North from the Teleportation Ninja), located on an elevation.
Climb up the ladder - there should be Utakata waiting for you.
You will learn that Yagura went to eat something.
After a short conversation the youngster will flee.
Leave the building, go down the stairs and turn to the right (North).
After a short while you should stumble upon your loss.
You will now have to fight Yagura.
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