Kazuto and Hagakure were in the building with the bomb. Kazuto turned to Hagakure and said "We are villains and we don't have a proper backstory. That won't do. Ok, your backstory is that your dad went to get milk but never returned. So, you decided to rid this whole world of milk, by destroying the nearby milk processing plant using this bomb.
As for me, I am a battle crazed maniac who just wants to fight, participating in underground fights when you first found me. After listening to your plan, I decided to help you with your goal since I get to fight heroes. Do you have any doubts?"
Hagakure just stared at him, not knowing what to tell. Even the people watching from the monitor room didn't know what to say when they heard the backstory.
Momo just sighs and said "He is not taking this seriously. This often leads to mistakes."
Kazuto, who was able to see Hagakure using his conquerors haki said "If you have no doubts about your backstory, we can start the trial."
Hagakure, who came to her senses, asked "That's it? Are we not going to plan anything?"
Kazuto smiled and said "Just, stay near the window and open it when I ask you to." pointing to a window.
Hagakure walked to the window and there he got rid of her shoes and gloves so that she is completely invisible.
Kazuto, who was looking at her, said in his head "I cannot fight with a naked girl in the room. I am going to take the fight to them."
With his observation haki, he is able to see her. Even then, with observation haki, it isn't like how you see with your eyes. The image in the head is more like a sketch.
The five minutes for preparation ran out and All Might screamed in their earpiece "Start trial".
Kazuto closely monitored Todoroki and Shoji's movements. Shoji's arm turned into an ear, which he placed close to the building and listened to the movements in the building.
Shoji then made a mouth and said something to Todoroki. Todoroki nodded and headed towards the entrance of the building.
This time however, Shoto was careful and didn't start with freezing the whole building. He had seen Kazuto's strength when he dealt with Bakugo.
Shoto entered first and Shoji followed behind. As soon as Shoji entered the building, Kazuto said "Now Hagakure". Hagakure slid open the window and Kazuto ran towards it at full speed.
Shoji, who was still listening, shouted "Todoroki, something's happening...." and before he could even finish, Kazuto jumped out of the window and landed in front of the entrance. A small crater formed where he landed since he used haki to not take damage from the fall.
Hagakure realised what happened and shouted in his earpiece "What are you doing Kazuto?"
Kazuto didn't waste any time and rushed at Shoji. Shoto reacted in time, but he wasn't fast enough. He made an ice wall in front of Shoji, but it wasn't thick enough.
Kazuto easily broken through the ice wall and punched Shoji in the chest. He took the full force of the punch and was sent flying to Shoto, both of them crashing into the wall.
Shoto recovered quickly and sent a wave of ice at Kazuto. Kazuto used haki and with a single punch, he broke through the ice. This was all the time Shoto needed to escape from Kazuto's sight, leaving behind an unconscious Shoji.
Kazuto could easily locate Shoto with his observation haki, but he decided to play hide and seek with Shoto.
Kazuto was monitoring Shoto while he put the white tape around Shoji. All Might announced in the earpiece "Hero Shoji captured".
Hagakure cheerfully said "You already took down one enemy so quickly. You really are strong Kazuto."
Kazuto said "These stupid heroes think they can foil our plans, but they are mistaken. We will rid this world of milk. Hahahahaha..." ending with his evil laugh.
Hagakure didn't say anything, but in the monitor room, Kirishima, Uraraka, Kaminari, Sero and Mina were laughing hard. Momo just sighed and shook her head.
Meanwhile, Shoto thought 'Tch. He is really strong and fast. This closed environment is also an advantage for him. Although it makes dodging attacks difficult, the same applies to me. He can easily punch through my attacks and I can barely even react in time to his punches. I also can't use any large scale attacks.'
Shoto then looked at his left arm, which he had covered with ice. He clenched it and said "I am never using your quirk".
Shoto wasn't even done planning when he heard Kazuto say "Hero, come out and face me you coward."
Shoto immediately moved to a different location away from Kazuto. Shoto thought 'I can't deal with Kazuto in 10 minutes. I have to focus on the bomb. That's the only way I can win this round.'
He took out the blueprint of the building and located where he was. 'I either have to get to the windows or the stairs without being detected by Kazuto.' Shoto thought. The closest was the window and he decided to go that way when he heard Kazuto from the same direction he wanted to go.
Shoto clicked his tongue and took another route to try and get to another closest window. When he was close, he again heard Kazuto shout "Hero, come and face me. You left your partner and ran away like a pussy."
Shoto clicked his tongue and headed another direction. From the monitor room, Asui said "He is really involved in his role as a villain."
Momo shook her head and said "He is playing with Shoto at this point."
Kirishima turned to her and asked "What do you mean?"
"Kazuto somehow knows Todoroki's location and is deliberately keeping him from going outside the building. It is no coincidence that he shows up near Todoroki everytime he is close to the windows." Momo said.
Kirishima said "He really is toying with Todoroki, huh?"
Shoto also realised this and decided to change strategies. 'If he knows my location, sneaking around is useless. I have to fight him, but not here.' Shoto thought.
This time he didn't try to hide his location and blindly headed towards the nearest window. "So he figured it out huh" Kazuto said and went after Shoto.
Kazuto was already there when Shoto got to a window. Kazuto was covering half his face using his cape with his right arm and said with a deep voice "I'm Batman". In his head, he said "Sorry man, I had to do it. I had a black cape. What do you expect me to do?"
Shoto completely ignored his nonsense talk. Kazuto said "I know what you want hero. We can take this out if you want." but All Might shouted in their earpiece "You are not allowed to fight outside the building. That was the whole point of the trial."
Shoto looked around and said "This place is wide enough". It was similar to the place Midoriya and Bakugo fought.
Shoto immediately sent a wave of ice at Kazuto. Kazuto just punched it away and Shoto was gone. Shoto used the wave as a distraction and approached Kazuto from his right.
Shoto knew that Kazuto could locate him even without seeing, so his goal obviously wasn't to distract him. It was to keep him busy so that he can go out of the building.
Shoto created another wave towards Kazuto and he punched the wave. It was followed by the other and then two more. Kazuto effortlessly dealt with them and when he was done, Shoto was already out of the window and used his ice to take himself straight to the top floor where the bomb was.
Hagakure, who noticed Shoto flying, shouted "Kazuto, he is coming through the window from outside. Do something."
Kazuto asked All Might through his earpiece "All Might, is that allowed?"
All Might through for a while and said "Even though I told not to fight outside, this is a logical move from a hero's perspective. I will allow you to fight outside."
Kazuto immediately jumped outside and smashed the whole ice wave. Shoto, who was almost close to the top floor, landed in front of Kazuto.
Shoto didn't waste any time and immediately sent a huge wave towards Kazuto. It was huge and could encase more than 6 buildings. Shoto was breathing heavily, his excessive use of his quirk already showing effects. His left side had small ice patches in different areas.
Shoto hoped it would atleast hold him for long, but he heard the sound of his ice cracking. He clicked his tongue and after a second, the ice in the centre of the wave burst out. Kazuto walked out of the hole casually and said "Not bad. It took me three punches to come out of that."
Shoto sent another wave of ice at Kazuto, this was smaller, but had more spikes. Kazuto easily dodged by jumping to his right.
Shoto immediately followed up by throwing multiple ice shards at Kazuto. Kazuto, using his observation haki, effortlessly dodged those shards by just tilting his body.
Shoto was shocked and he was annoyed. None of his attacks were working and the side effects of his quirk overuse were getting worse.
Seeing his state, Kazuto said "I guess you can't dance any longer."
Kazuto then disappeared from his spot and appeared in front of Shoto and before he could even process what had happened, he felt pain in his gut and air being pushed out of his lungs. He fell to the ground and Kazuto wrapped the tape around him.
All Might said in their earpiece "Villain team wins".
Kazuto shouted "Yes! No more milk for anyone in this city. Hahahahahah..."
Hagakure was jumping in the room and Kazuto saw her with his observation haki. "And this is why we do it." Kazuto said in his head.
Shoto was coughing as he held his stomach and Kazuto helped him up. Kazuto said "Nice match" but Shoto just glared at him.
Kazuto then woke up Shoji and they all headed back to the monitor room. All Might addressed the class "So, who performed the best in this round?" and everyone responded "Kazuto".
Momo then started "Although every move he took were reckless and didn't take it seriously, he made no mistakes. He had complete control of the situation at all times."
Kirishima added "Yeah, it was almost sad it watch."
All Might said to Kazuto "Great job young Kazuto. It was a great match. Like Young Yaoyorozu said, you should take things seriously and give it your all even if you are dealing with a weak villain, because you never know what secrets they could be hiding. So, always be prepared for anything."
Kazuto walked back to the class and the class went on. Every student now wanted to show their powers. They all were motivated when they saw Kazuto's match.
After the class, Iida and Uraraka were worried about Midoriya and decided to go check on him, while Kazuto was talking with his usual friend group of Asui, Mina, Kirishima, Momo and a new addition, Hagakure.
Kirishima asked "But man, what was with that villain backstory?"
Hagakure immediately shouted "Never talk about that. I can't believe how he even came up with such a ridiculous story."
Asui, Momo and Mina all agreed with her. Kazuto said "I can't believe a villain if there is no good villain backstory."
Momo just shook her head, giving up on trying to reason with Kazuto.
As they were talking and walking towards the locker room, Shoto walked in front of Kazuto. Kazuto stopped to look at him and everyone else around them also quite down, interested in their conversation.
Shoto says "Kazuto, you are the strongest in our class. I lost today, but I will work harder and defeat you to become the No.1 hero."
Kazuto smiled and said "All the best".
Shoto Todoroki then walked away and Kazuto also headed towards the changing room. In the changing room, Kazuto was changing his clothes when he heard Mineta say in a low voice "Oi Kaminari...Oi Kaminari".
Kaminari heard it since he was close and walked to Mineta. He asked "What is it Mineta?"
Mineta peeled a corner of a poster on the wall and there was a small hole there. "Look what I found. Our seniors left us a treasure. You know what is beyond this wall, right? The girls' locker room."
This caught the attention of everyone in the changing room. Iida immediately said "Mineta, peeping is a crime".
Mineta replied "My little Mineta is already a criminal." and ripped out the poster. He then peeped into the hole saying "Hagakure's floating underwear, Ashido's slender waist, Yaoyorozu's boobs, Uraraka's body, Asui's ....." He stopped when an audio jack poked his eye. He closed his eyes, so he didn't loose it, but was screaming with pain.
On the other side, Hagakure thanked Jiro while she was thinking 'He didn't say anything about me?'
Kazuto just shook his head and went back to changing. When he was done, he went to the staff room to meet All Might.
He knocked on the door of the staff room and Midnight asked him to come in. When Midnight saw Kazuto, she squeaked and asked "What do you want Kazuto?" in her usual flirty tone.
Kazuto said "I am looking for Mr. All Might." and a man with blonde hair in the staff room stiffened. Midnight looked at him and asked "He is in a meeting with the principal. What do you want to ask him?"
Kazuto replied "I was looking for a gym that has weights heavier than a ton. I am not seeing much progress in my current gym."
Midnight thought for a while and said "There are gyms that have heavier equipment, but they are very expensive. UA also has such a gym, but since no one was strong enough to need that heavy equipment, no one's been using that gym. You can use it after cleaning it. Just get permission from Aizawa and take the keys from him."
Kazuto smiled and said "Thank you" and Midnight smiled while saying "Anything for you" with her usual flirty tone.
Kazuto controlled his hormones and left the staff room as fast as possible. Midnight chuckled at his behaviour and then turned to All Might, who was in his weakened form. She said "He is still growing and will get even stronger."
All Might said "He is full of potential and will become a great hero."