Izuku Abused by his mother (not Inko) for being a male and not a woman as woman can only have quirks in this world. He ran away from his mother (again not Inko) and went into the mountains. He then fell and onto a metal platform. There he met a man...
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We see Midnight pressing an ear piece and told to not step in until Izuku does. She says ok and begins the third event. First up is Katsumi vs Izumi.
Midnight: "Begin"
Katsumi blasted towards Izumi then stopped in front of her and threw a punch at her but Izumi blocked it then throwing her own punch. They keep going at it when Katsumi used her explosions and Izumi used her Telekinesis to create a mind shield sending both back. Then Izumi looked up her eyes glowed red and Katsumi's eyes glowed purple. Izumi waved her hands back summoning two floating red hands. While Katsumi does the same but purple and big. Both rush at each other Izumi using her new hands to hit more spots on Katsumi and Katsumi using her new hands to use more explosions.
Smoke clouded the stage and Izuku ran in with green hands activated. The smoke cleared and Izuku can be seen holding Izumi's real and red hands in shield bubbles and Katsumi taking a knee.
Katsumi: "I yield"
Izuku: "Izumi Midoriya wins this round. Now for an explanation on what you just witnessed. You witnessed the rebirth of human magic. Many years ago when monster lived on the surface there was magic. Until a war broke out sealing the monsters in the underground. But now with monsters back soul magic is possible once more and you just saw it. Izumi. Through many challenges you have faced from being a late bloomer to being tortured by the quirked you didn't give up. Your soul shows determination. But also has the feeling of Hope powering it up to Dedication. You have shown you are determined and dedicated to being a hero. Katsumi you have show how you have persevered through challenges and mastering your quirk and you too hold hope in your soul making it Consistency. With Determination it reflects your will to not stop even when you're beaten down you get back up. With Perseverance it reflects your will to step back and rethink and take a different approach on the matter"
Midnight: "How many can we unlock"
Izuku: "To my knowledge and as far as history goes only one but it could be possible to hold more than one soul trait. To all who unlock a soul trait you will get an invitation to come to the monster village so I may help you control this. On to the next round"
Next was Krishima and Mina.
Izuku: "Begin"
Mina slid towards Ejira spraying acid at her but it was blocked. Ejira ran at her throwing a punch. Mina coated her arm in acid blocking the punch. Ejira kept punch and Mina still blocking. Mina then turned bending down and kicking Ejira in the gut. Ejira made her stomach hard before the impact.
Mina: "Well this just doesn't seem fair"
They continued to fight.
Izuku: "Fair? When is anything ever fair. Life doesn't make it fair so we have to. So make it fair Ashido"
Mina then swerved around Ejira and wrapped her legs around her neck and pulled her to the ground Ejira struggling to get free. Suddenly she opened her eyes and they glowed orange. She made a fist turning it into unbreakable form then the same hand appeared orange in the air aiming at Mina. It flew towards her but she dodged it as Ejira gasped for air.
