-( Story related, cannot be missed )-
This chapter will consist heavily of navigating the Factory of the Nearby Town (from the first Yomawari game) while being pursued by Mr. Yomawari himself. Apparently, when he turns into the pink form, it is called Meat, and it is in this form that he will try to recapture you and/or kill you in doing so. Keep avoiding him until you cross a school gate, in which he's too big to pass through, and you'll actually get to your real threat. Beyond the gate is another bridge, where you'll be met by a many-eyed ball that is focused on getting you, like everything else. This is a pseudo-side scrolling segment where you'll be continuously chased at a snail's pace by the entity. There are three attacks it knows: the first is if you're too close, it may try to grab at you with smaller hands around it; the second is where it will throw one hand out with a delay before grabbing in the direction it was aimed at; and the third is spitting out a dark cloud ahead of it, in the direction you once were. The third attack will change into a smaller orb with teeth shortly after it reaches the end of the screen, which will slowly chase after you for three seconds before despawning.
You have to make your way down three streets before you can properly get away from the creature. Make sure you keep the shadow orbs aimed towards the farthest edge of the screen while keeping an eye on when the next street comes into view. As soon as it does, if you walk up onto it, you can quickly force the next stage of the fight. Keep this up until you get onto the main road, where a centipede can be seen in front of a Shrine gate. Run right into it to be protected by the enemy.
It will be safe to leave the safety of the shrine after this and you will be able to follow Chaco back to the dump (where the letter was left for you). Reading it will complete the chapter.