In Episode 12 of Hell's Paradise, the participants discover that the mysterious island they were sent to is not the fabled Shinsenkyo and that there is no elixir of life there. Instead, it is a site for human experimentation. This revelation comes from Mu Dan, who discloses it to Hoko, causing a dramatic shift in his perception. Hoko had previously believed that his soul, along with others from his village, would ascend to the paradise of Horai. However, Mu Dan's revelation leaves him shattered—there are no gods to bless the villagers. Instead, they are being transformed into trees through the experimental procedures of the Tensen leader.

The disillusionment also extends to the criminals on the island. The absence of the promised elixir means there are no pardons to be earned.

Additionally, the episode introduces the strengths and weaknesses of Tao. Although it is clear that there are different types of Tao and that Mu Dan is weak against Sagiri's Tao, the viewer is left with a vague understanding of this power system.