Episode 3

Glorious Demise (散華 Sange) is the third episode of the Mobile Suit Gundam: Iron-Blooded Orphans anime.

Third Group's rebellion drives out most members of CGS, leaving Orga and company to figure out their financial situation. Crank Zent of Gjallarhorn returns to CGS and challenges Mikazuki to a duel for the custody of Kudelia.

Summary
In the aftermath of Gjallarhorn's assault on CGS, Orga and Third Group prepare to betray First Corps and take over the company. While Kudelia aids Atra, Cookie, and Cracker in preparing dinner for all the CGS employees, Orga adds a sedative to First Corps food, knocking them unconscious. Then Third Group ties them up and move them to a secure room.

When Haeda and the other members of First Corps awaken, Orga declares that he is in charge and the children are taking control of CGS. When Haeda and Sasai oppose Orga, Mikazuki shoots them both dead. Orga gives the remaining adults the choice to work for him or leave the company and take severance pay.

After the adults make their choice and severance pay is distributed, the remaining members of CGS are left with only three months worth of funding. One of the former members of First Corps who chose to stay, Todo Mirconen, suggests that CGS hand Kudelia Aina Bernstein over to Gjallarhorn in exchange for money, but their meeting is interrupted. Crank Zent returns to CGS bearing a red flag on his Graze. Old man Yukinojo recalls that the flag is a request for an honorable duel, a tradition dating back to the Calamity War. Crank confirms this when he openly asks for a duel against CGS's mightiest warrior, Mikazuki. Crank demands that if he wins the duel, CGS hand over Kudelia, ending the feud between CGS and Gjallarhorn.

Todo argues against the battle and again pleads for CGS to hand over the girl. Kudelia wishes to turn herself in but Orga refuses to trust Gjallarhorn. Mikazuki agrees to duel Crank and sorties in Gundam Barbatos. Crank regrets having to fight a child, but Mikazuki assures him that he is more than just a child and will win their bout to honor all those lost in the previous battle. Then they clash in a fierce fight between mobile suits.

Kudelia watches the duel and marvels at Mikazuki's bravery. She wishes to have the same degree of strength in her political war as Mikazuki has on the battlefield. Her words inspire Orga to rename CGS to Tekkadan: the iron flower that never wilts and never dies. Mikazuki eventually defeats Crank, who refuses to return to Gjallarhorn having failed his mission again. Fearing other soldiers will pay for his actions, Crank requests that Mikazuki end his life. Mikazuki shoots him without a moment's hesitation.

Eugene and Todo confront Orga about opposing Gjallarhorn, but Kudelia interrupts and requests that the newly formed Tekkadan take her to earth with the help of her sponsor, Nobliss Gordon. Todo comments that Gordon is a filthy rich man, which raises morality for everyone who knows they will remain employed thanks to Kudelia.

Battles and Events

 * Chryse Guard Security Coup d'etat (Concluded)
 * Mikazuki Augus vs. Crank Zent (Started & Concluded)

Technology Used

 * EB-06 Graze
 * ASW-G-08 Gundam Barbatos