Nightmare or Glimpse of Future?

Xing wanted to erase that smile that looked so provoking from Shihong's face. "Winner gets him!", she said cutting her forefinger and the blood summoned the Divine Sword and she saw the look of utter disbelief on Shihong's face and the cowering of the halberd.

How did she get the Divine Sword?

And then...

Xing could feel the mouth of the cave closing with some sort of spell. The Gods must have been put that spell to ensure Old Rong to die inside the cave without escaping. His psyche could latch on to someone else as psyche would be viable for a particular amount of time even after it leaves the body of a god.