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The working theory is that they weren't given their powers by Terapagos, but by the Momotaro equivalent.
>Peach is some form of mutated Glimmora like how Diancie is a mutated Carbink
>It can grant wishes like Terapagos, but these wishes end up corrupting those who wish for them
>Kieran is gonna be the main antagonist of DLC 2 after letting this thing give him MORE POWER in exchange for letting it use BB Academy's students as zombies
