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Orochimaru died, with his bones rotting away in the soil.
The mud in question was created by Jiraiya's Earth Release: Swamp of the Underworld (Doton: Yomi Numa).
Orochimaru's demise occurred after being smashed by Tsunade and overwhelmed by the combined efforts of Konoha's elite.
Even he, a legendary Sannin, couldn't withstand the assault led by the Fourth Hokage and other powerful shinobi.
In truth, Orochimaru had planned to escape, but it was impossible.
Minato's Body Flicker Technique (Shunshin no Jutsu) and Flying Thunder God Jutsu (Hiraishin no Jutsu) alone made it difficult for anyone to escape.
Moreover, when Kushina activated her Nine-Tails Chakra Mode (Kyūbi Chakura Mōdo), her speed surpassed even that of the Raikage.
Even if Orochimaru had tried to feign death, hide, or escape, the two Sage Mode users, Jiraiya and Tsunade, would have sensed his presence through their heightened perception.
Orochimaru's last resort would have been to summon a giant snake, hide inside its body, and reverse summon himself to Ryuchi Cave, waiting for Guren to use his pre-prepared blood to summon him back to the base.
But there was no chance. Whenever he tried to form hand seals, Minato's golden flash would interrupt him.
If he fell to the ground, Tsunade was always there, ready to strike with her immense strength.
He hoped the reanimated Second Mizukage could buy him some time, but the lack of a proper sacrifice weakened the Mizukage's power to the point that he couldn't even use his signature jutsu.
The regular Water Release Jutsus he used were no match for Naruto's power, reducing the Mizukage to merely a distraction for Orochimaru.
After Orochimaru exhausted himself using his Living Corpse Reincarnation (Fushi Tensei) technique multiple times, he was finished off by a combination attack from Jiraiya and Tsunade.
Orochimaru's body was destroyed, leaving behind nothing but a few shredded remains and some snake skins.
The history books of the ninja world recorded that on August 6th of the 60th year of the Hidden Leaf, a small yet shocking battle erupted in the Land of Fire.
It involved the legendary Sannin, the Nine-Tails Jinchuuriki, the Fourth Hokage, one Kazekage, and one Mizukage.
In the end, the Third Hokage was severely injured, Orochimaru died tragically, and several high-ranking shinobi were deeply affected.
Only a handful of people were fortunate enough to witness this unprecedented conflict.
And because this battle miraculously took place on a single rooftop, it was later referred to as the "Clash of the Hokage's"
"I am a relic of the old era. No vessel can carry me into the new era, but since I still live, I will dedicate the rest of my life to Konoha." These were the words of the Third Hokage, Hiruzen Sarutobi, after regaining consciousness.
...
There was no suspense about what followed. When the top-tier combatants joined the regular battlefield, Konoha's already advantageous position turned into a crushing victory.
The Sound ninjas were either captured or didn't even have the chance to surrender.
The highest-ranking Sand Ninja, Baki, lost his will to fight after seeing his Kazekage reanimated inside the barrier and was finally captured by Shisui and Genma.
The situation was settled. The next step was to clear out the remaining enemies on the battlefield and root out those who had infiltrated the village during the chaos.
Gai grabbed Kakashi's shoulder with one hand, pointing at him with the other. "Kakashi, I won this time!"
"Huh?" Kakashi scratched his masked face, his eyes turning into his usual bored expression.
Naruto wondered if the itch could be felt through two layers of masks.
Gai, full of enthusiasm, declared, "I defeated one more enemy than you, so I won!"
"Oh." Kakashi casually kicked down a Sound ninja who was struggling to stand and looked back at Gai. "It's a tie now."
"NO!!!!" Gai clutched his head in disbelief, "As expected of my eternal rival, Kakashi! But there must still be enemies lurking in the village, and my youth will not lose to yours!"
Gai disappeared in a blur of motion, rushing out of the area.
"Anbu, stay and secure the battlefield. Tsunade-senpai, please head to the hospital. Jiraiya-sama, Kushina, and I will each take a direction outside the village. Shadow Guards, Kakashi, Asuma, and Naruto, help check if any enemies slipped into the village. I also request the help of the Hyuga Clan."
"Understood!" they responded in unison.
Naruto raised his hand, "Anyone need a lift?"
Afterwards, Naruto began his mission. When it comes to locating enemies, nothing beats the Nine-Tails' ability to sense malice.
"Hey, Kurama, I want to activate the Golden Mode!"
"Do what you want," Kurama replied lazily. After the battle with Shukaku, he had little interest, though he did feel a twinge of anger upon seeing the reanimated Hashirama.
Watching Naruto defeat him brought a rare smile to his face. Was it loneliness after the thrill?
Naruto drew on Kurama's chakra with ease. The fox's chakra was no longer guarded against him.
Golden, flame-like chakra enveloped Naruto, making him feel stronger. He sensed numerous hostile presences and activated his heightened perception!
Naruto saw everything from a bird's eye view, distinguishing between hostile and friendly chakra signatures...
"Perfect!" Naruto exclaimed. The technique to differentiate between allies and enemies was finally complete!
Excited, he dashed towards the nearest hostile presence, only for the golden aura to dissipate unexpectedly.
Naruto: ???
"Kid, your stamina is pathetic," Kurama mocked disdainfully.
Naruto was enraged. "Who's pathetic?!"
"You are as pathetic as that author of "Metamorphosis" who destroyed that girl's life."
Kurama thought Naruto was too weak to admit the truth.
"Kurama, I consider you a friend, but you insult me." Naruto felt wronged. "If you cooperate with me just a bit more, things would be so much better."
Kurama yawned lazily. "If you don't want to be mocked, get stronger."
Naruto reasoned with him, "The situation is critical. We need to catch the infiltrators. What if they kill the owner of the barbecue shop to cover their tracks? You won't get to enjoy that delicious barbecue anymore…"
"Enough! Let's do this!" Kurama snapped awake, his fur bristling. Konoha could burn for all he cared, but food? That was sacred!
"What?"
Naruto rushed to the nearest hostile presence, finding it oddly familiar. Wasn't this the Konoha Orphanage?
Naruto looked at the sneaky intruder, prepared to attack with a Flying Thunder God and Rasengan combo.
But someone beat him to it.
Kabuto, dressed in civilian clothing, withdrew his chakra scalpel and adjusted his glasses. "The orphanage has been affected. If it weren't for the guards patrolling, who knows how bad things could have gotten."
Naruto glanced at the green dot on his map representing Kabuto and leapt forward, "Kabuto, long time no see!"
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