Ookami to Koushinryou - Season 2 - 6: "Wolf and Trustworthy God" ("Ōkami to Shinzubeki Kami") (狼と信ずべき神)

As for Horo's reaction that Stretch has issues with: It's not the tale that bothered Horo, it's the fact that Lawrence hid this information from her - and what's more, he knew about the fate of Yoitsu all the time (as confirmed by the short flashback, showing Lawrence as child being told this very legend), thus undermining the foundation of their mutual trust. Horo with her centuries of experience and knowledge of human nature understands this instantly - and she tells Lawrence right in the face, only to see her suspicion confirmed! She's certainly overreacting at this point with the "lamb" comparison and all that stuff, but her whole future appears to be destroyed now ("solitude is a lethal disease" - remember?). So now she needs support by the "nice" Lawrence more than ever before, explicitly questioning what she means to him - and he lets her down, missing the opportunity to defend her once again (Horo was so happy that Lawrence at least tried to act like a knight in the "silver arc"). Her next few lines are sheer panic, and at the end of this scene she already regrets her words, knowing she went too far and hurt Lawrence deeply in the process.

The interesting part of her story here is the scheme that Diana is said to have come up with, in order to test Lawrence's determination. As we see during episode 6 this plan comes with a significant risk of Lawrence failing to understand what happens, and he almost messed up the whole plan because of this. So why did Horo play along, only giving a slight hint in the form of these feathers? It must have been interesting for her as well to see how Lawrence would fight for her, if only to rebuild the trust between these two.

Another aspect that made me wonder was why Diana agreed to Horo purchasing the pyrite on credit without any collaterals. Horo could just have run away with the money, she's not a merchant; and Diana had no reason to make Horo wealthy. It's not like Diana would need the money, but why would she interfere in this traders' battle in the first place? Was it just because both she and Horo weren't human? Or did Horo "pay" by telling her full story? Batos giving Lawrence the password was something Diana learned only later, she sold the pyrite to Horo at this point already. According to her own words it was just to "entertain her a little" - is she as lonely as Horo? I would love to be allowed to observe the conversation between Diana and Horo in order to understand Diana's character better.