Vaizel

Byzel (バイゼル) is a merchant town in Britannia that is famous for its annual flea market festival. Giants are disallowed entry into the town since they had made a "huge ruckus" a few years ago. Byzel is also host to an annual fighting tournament which takes place during the flea market.

Background
Nothing much is known about this town, except that literally everything is sold in its annual flea market festival, including junk, weapons and jewellery; apparently, it once even had a crown from a distant kingdom. The Deadly Sin, Diane's sacred treasure, Gideon, also found its way to the flea market after she lost it, becoming popular as a "weapon that no one can use".

Plot
Meliodas, Ban, King, and Hawk travel to Byzel after hearing rumors of a "weapon no one can use", suspecting it to be a sacred treasure. There, a drunk elderly man directs them to the annual fighting tournament, whose reward is the aforementioned weapon, which is considered a giant's normal war hammer, but is actually Diane's sacred treasure, Gideon. Meliodas and Ban, both being very eager to enter the tournament and fight each other, immediately enter, with the former dragging King along with the two despite him not wanting to join the "savage" tournament. A three-time champion, and a mountain bandit turned merchant, Taizoo, stops Meliodas, believing him to be an ordinary child and to be lessening the quality of the fight festival. However, the Holy Knight, Hauser, who is also revealed to have joined the festival, stops Taizoo, stating that age shouldn't matter in a festival. The tournament is also entered into by a mysterious girl.

While the preliminaries begin Hawk is seen selling ale from the Boar Hat to the audience, as Meliodas instructs Ban not to use his full power and kill opponents, and manages to make King willing to fight by telling him that Diane would be happy if her sacred treasure is gotten back. The referee of the tournament, Love Helm, then informs the fighters as to the rules: knocking fighters off the ring will disqualify them, the final eight contestants remaining will advance to the next round, and anything is allowed as long as it involves bare hands. During the preliminaries, a handful of exceptional fighters easily defeat all the other ones, who, after the battle ends, are shown to be the ones who have survived and have advanced. After the drawing of the lots that will determine the match-ups in the first round, the first battle is assigned to be between Matrona, the mysterious girl, and the Holy Knight, Griamor, who is unarmored. The second fight is between Hauser and Taizoo, with the mentioning of Hauser's name leading King to realize the man's identity as a Holy Knight. The third battle is revealed to be between Cain, the elderly drunk man who had lead Meliodas and the others to the tournament, and King, whom Ban had entered under the name, "Old Fart", much to his irritation. Finally, the last fight is among the remaining two contestants, Ban and Meliodas, whom the former has entered under the names, "Baan" and "Meliodaz". This causes Hauser to almost recognize both of them from their physical traits, but dismiss them as the Deadly Sins because of their obvious name changes, due to his naivety. As the first battle begins, Veronica is seen standing among the audience and commenting that the Seven Deadly Sins have fallen for the trap, with Matrona then being asked by the referee to remove the cape she had been wearing, thus revealing her incredible resemblance to Elizabeth.

Her identicalness revealed, Veronica and King ponder about her being Elizabeth herself. Griamor, stating that the moves she and displayed in the preliminary were impossible for a frail lady like Elizabeth, when Veronica asks him to stop the battle, readies himself, with Matrona, as the battle begins, immediately and with great speed, attacking Griamor relentlessly. The punches are, however, negated by the Holy Knight's ability, which is called, "The Wall", and creates a circular, and defensive magic barrier, which cannot be affected by physical attacks or ordinary magic, around himself. Matrona struggling with the barrier's omnidirectional expansion, Griamor states his intentions of merely pushing her out of the ring with it. He then states that he will humiliate Meliodas next, something that enrages Matrona. She, declaring that she will not let that happen, destroys the barrier with a single fully powered punch, and then, with the same punch, punches the much larger Griamor in the neck, sending him flying out of the ring, surprising both Veronica and Hauser, and causing Metrona's hat to fall off. As Matrona is declared to be the winner of the first battle of the first round, her facial appearance is revealed to be identical to Diane's, with King and Ban immediately recognizing her. She walks toward the three Deadly Sins, stating that she had wanted to keep it as a secret for a while longer, but is only greeted with Meliodas questions her as to who she was. His dullness having angered her, Matrona punches him in the stomach and storms off, turning back when King chases after her, and asks her about her body became much smaller, and about where Elizabeth is. In response to the last question, Matrona replies that "she" is right there, with an expression of Elizabeth's. However, it is actually a seemingly shrunk Elizabeth, who seems to be between Diane's bosom, that replies to King's question, surprising him. Diane, explains that, after he and the others had left for Byzel, she and Elizabeth had headed into the forest for gathering ingredients for dinner. There, Elizabeth found a strange creature, that, when Diane tries to grab it, somehow shrinks them, Diane having shrunk to the size of a normal human, and Elizabeth, to a size small enough so that she is able to fit inside Diane's bosom. Diane has borrowed Elizabeth's clothes, and is also wearing the princess' jewelry, since they do not want the latter to be lost. Hearing the strange effects of the creature, King theorizes it to be a Chicken-Matango, a timid mushroom-like creature whose spores can shrink creatures, an ability that is the most potent and unique of the abilities possessed by all the other mushroom-like creatures. As Meliodas questions Diane as to why she hadn't informed them of this before, she, jumping toward him, merrily states that she had wanted to surprise them, and, as she is held by the unwilling young man, states that she had always wanted to be held by him in this manner. She then immediately asks him to put her down, and then to grope her all over the body, the same as how he often gropes Elizabeth, much to King's temporary relief and subsequent nosebleed. When Meliodas refuses to do so, she becomes upset, and then states that since she is usually huge, her captain doesn't care about her. In response to her upset, he pats her on the head, comforts her, and explains that he couldn't act that way to an individual as important as her, to which she blushes, and Elizabeth appears dejected. To Meliodas' annoyance, however, she then immediately huge him, while merrily declaring that they could now have children together; her hug buries his face into her chest, where Elizabeth tries to hide inside Diane's clothes. Ban then informs King that his battle will begin soon, and finding him to be nosebleeding severely, asks him whether he is dead. Soon after, during Hauser and Taizoo's battle, Ban informs the others, who had not been paying attention to the battle, that Taizoo is losing heavily but continuing to fight due to his ego, despite his opponent now having used even a tiny bit of his power, knowing that if he uses too much of it, he would kill Taizoo. Hauser is then shown to be requesting Taizoo to surrender, which he adds, is for his opponent's own benefit. When the man continues to fight and not give up, Hauser, as he uses his abilities to create what seems to be a small tornado, states that while he does not want to use his abilities on an ordinary person, unlike Griamor, letting the battle continue any more would be bad for Taizoo. When he then charges, Hauser, using his abilities to create what appears to be a small tornado around his arms, sends the former mountain bandit flying out of the ring with a punch that is strengthened by said ability, earning Ban and Meliodas' compliments. Soon, Love Helm announces the next battle to be between Cain and "Old Fart", the name Ban had entered King into the tournament with. King hands Meliodas his sacred treasure, and then hesitantly enters the ring; a cheer from Diane, however, immediately encourages him. As the commentator speculates on the power both King and Cain might be hiding, both having not participated actively in the preliminaries, Hauser is shown to be walking toward and greeting the injured Griamor and Veronica, and questioning them for the reason they had come to the tournament.

As the fight begins, Meliodas comments to Diane that King's method of fighting barehanded was "incredible", and King mentally dedicates his victory to the giant. However, both his and his opponents' physical capabilities are shown to be very low, when King, imagining himself to be moving toward Cain instantly and punching him in the face, merely jogs toward him, and waves his hand in the air, having not reached his opponent before launching his punch, much to the audience's disappointment. Cain, as a response, readies a punch, but instead merely knocks King on the head, an "attack", King comments, to have been very strong. To this, Meliodas adds upon his earlier comment, saying that King had even once lost to his cat. When King then starts using his ability, "Disaster", Cain, immediately alarmed, punches the Deadly Sin out of the ring, stating that he was so surprised, he lost control of himself, as King expresses his upset at losing, and states that he had used his ability to trigger Cain's rheumatism. Love Helm, finally, announces the final battle of the first round, Meliodaz vs. Baan. The referee, noticing Meliodas' sword, stops him, and reminds him of no weapons being allowed, but upon being told that the sword was broken and was only decorative, allows its use. Meanwhile, Hauser is informed by Griamor and Veronica that the young man he had met, and suspected to be Meliodas previously, was, in fact, the Deadly Sin himself, much to the Holy Knight's surprise. Meliodas and Ban then ready themselves for their battle.