Unknown to Okami Kitsune’s still-closed eyes, the second exam had been brought to a swift and brutal end by a single technique just as quickly as it had begun. Gyoken had cast a Genjutsu over the area that required the target’s eyes to remain open. As a result, contrary to what Gyoken had expected to happen, Okami had not been caught in his Genjutsu and had thus successfully fired off his Hair Needle Senbon Technique due to the simple fact that Okami still had not opened his eyes from when he was in meditation. As such, just as planned, Okami’s veritable wall of hair needle senbon had been fired from all nine of his tails at once with each needle striking faster than Yatoru could twitch his muscles - thus demonstrating that speed alone truly would not save whatever target he launched them at, shattering Gyoken’s kunai and detonating the attached exploding tags from the outside interference. Due to the dangerously close distance of 35 feet between Gyoken and the point where Okami fired off his senbon, there would be no time for Gyoken to weave hand seals or mold chakra for any jutsu he may have that would allow him to escape getting hit by the combined concussive force of three powerful exploding tags - as well as shrapnel damage from the six kunai themselves, which wasn’t even mentioning the senbon that each had no more than 9 centimeters between them… And that was the greatest amount of distance between any two senbon. Not even Gyoken’s Sharingan could save him at that close distance, and not against so many senbon at once. After all, being able to see and process things at such speeds was one thing, but the rest of his body being physically capable of keeping up with it - Jinchurikki or not - was an entirely different matter. This was especially true for Genin… No matter how talented they were. This also had the effect of stopping whatever follow-up moves Gyoken had been about to make dead in the water.
(Note that Okami knows nothing about the Sharingan or the fact Gyoken’s a Jinchurikki IC, nor is this to be taken as him having that knowledge. Furthermore, it had to be stated in-character that Okami had opened his eyes, which didn’t happen, thus saving him from the genjutsu.)
As for Yatoru, he had made the mistake of putting himself between the two teams and the senbon, running headlong into the non-elemental technique in a vain attempt to stop it. The attempt to stop Okami’s jutsu in its tracks was a bloody failure due to the fact that the Kengan Clan’s Dispersal Palm Technique strictly works solely on elemental jutsu and only ranged ones at that, and the technique Okami had used - while a ranged technique - was not of the elemental variety… Not to mention, the sheer speed of Okami’s technique meant that Yatoru simply didn’t even have the time to use the Dispersal Palm in the first place. Considering the close proximity between Yatoru and Gyoken at that moment since Gyoken - like Yatoru - had foolishly rushed headlong into the technique fired by Okami immediately after throwing his kunai, the two would be sharing the resulting pain from the kunai shrapnel, exploding tags, and hair needle senbon. Even Yatoru’s speed, great as it was, would not save him at approximately 17.5 feet away from the point Okami had fired his jutsu from, with Gyoken being another 17.5 feet behind Yatoru before the Uchiha had also seen fit to move forward. It could not be stressed enough that Okami had fired a veritable wall of hair needle senbon, making it his fastest jutsu that had the greatest range and area in his arsenal… And with good reason. Speed alone was useless against it, and Yatoru Kengan was due to find out the hard way - as noted earlier, these needles were striking faster than Yatoru could twitch his muscles. Okami had, after all, launched his senbon at the ENTIRE area in front of him - left, right, up, down, center, and everywhere in-between including diagonal angles. Essentially every possible direction in front of him, and shot even more everywhere in-between for good measure on top of that. The outcome was that Yatoru was unable to proceed with his intended assault on Okami and his teammates.
(Note that Okami does not know about the Dispersal Palm, but the profile of that technique makes it quite clear that it only works on ranged jutsu of the elemental variety.)
Unfortunately for Nashiro, she and her clone were not safe from the chaos caused by the onslaught of Okami’s jutsu either, therefore preventing any offense she would have mounted if Okami had been caught in Gyoken’s Genjutsu. Her clone, due to the combined maneuvers of Okami and Kyo, was left wide open to be the first to fall due to having placed itself directly behind Kyo’s former location - revealing itself to have been made from a sticky, syrup-like substance made from the caster’s chakra upon being forcibly dismissed by being turned into a pincushion itself. Nashiro herself had made the mistake of performing her techniques out in the open, having not bothered to at least take cover behind one of the older, larger, and far more durable trees beforehand. One of her techniques left her even more vulnerable due to having to remain in one spot to cause the tremors in the ground. As a result, even if she had the foresight to cancel her technique, she simply would not have the time to block or counter with another technique, nor would she be fast enough to take cover behind a tree - the closest one to her position being 10 feet in the direction she’d just jumped from. That tree also happened to be the same one her own team had been positioned at. Nashiro’s final error of the match was that she had also made the mistake of separating herself from her team’s formation. However, this action did save her from taking further injury - namely, injury from Gyoken’s exploding tags and the shrapnel damage from the kunai shards - effectively making her condition better off than that of her teammates by a longshot. She would make a full recovery from her injuries with time and - hopefully - she would learn from her mistakes, take the lesson to heart, and make sure to never repeat them in the future. The worst the senbon did to her was neutralize her arms and legs at the wrists, elbows, and knees, immobilizing her without causing any harm that could not be recovered from with proper medical treatment, muscle training, and therapy if it proved necessary. If she was especially lucky, next time she would have a team that actually took the time to strategize and not be so impatient that they would foolishly rush directly into an opponent’s technique.
It would become painfully and violently clear to Team 3 that their entire strategy (if it could even be called that) had, quite frankly, been entirely dependent on Okami being caught in Gyoken’s Genjutsu, which - unfortunately for them - simply did not happen. As a result, Gyoken’s kunai were shattered, and the exploding tags detonated right in his face after being sent back from the force behind the hair needle senbon. The combined heat from the spontaneous combustion and the concussive force of the three exploding tags heated up the shrapnel from the shattered kunai and drastically accelerated their speed while also scattering the shards in many different directions, punching right through Gyoken’s shoulders, elbows, wrists, knees, and shins at the joints, tearing through the various tendons and muscles that connected those bones and ligaments to each other, effectively rendering his arms and legs utterly useless - those joints had effectively been neutralized to the point even legendary medics would struggle four hours if not days to heal the damage inflicted. The heat from the shrapnel that was now embedded in his flesh would sear the wounds shut, preventing Gyoken from bleeding out. To make matters worse, Gyoken’s body was littered with hair senbon needles especially in specific points that would cause the most pain possible without killing him, two of them shooting through the explosion made by Gyoken’s tags to neutralize his eyes, destroying his Sharingan without killing him since those specific senbon had been decelerated by the explosion… But only enough to not penetrate the brain itself. The eyes and optic nerves, on the other hand, were unsalvageable - Gyoken would never see again due to damage to the optic nerves being irreversible. They simply do not have the capacity to regenerate or heal themselves when damage occurs. Furthermore, Gyoken’s face and upper body - due to being in immediate proximity of the tags when they went off - would be horribly disfigured by severe (yet not life-threatening) burn wounds for the rest of his days. Even his hair was gone. In summary, Gyoken’s days as a ninja had effectively been brought to a permanent end.
Yatoru, if it could be believed, was even worse off. Two pieces of shrapnel had been sent directly towards his spine, and punctured his lower and upper spine with enough force to sever the cord in both areas at equal thirds of the way down, striking at the proper angle for it to be possible since he was not directly in front of Gyoken, having been positioned five feet to Gyoken’s left and 17.5 feet in front of his team - the former being due to the distance Nashiro had put between herself and her own team. A shard of shrapnel had also punctured his right kidney and narrowly avoided his liver, while even more rendered the bones and joints in his outstretched right arm and his right leg unsalvageable. The size and force of the explosion from Gyoken’s tags did, however, make sure he suffered just as much damage to his backside as Gyoken did to his front. Okami’s senbon finished the job by inflicting the same amount of damage to him that they’d done to Gyoken - Yatoru would likewise never be a ninja again. The damage done to the spine, his backside, his right arm, and his right leg was just too great. The fact his upper and lower spine had been severed, in particular, was by far his worst injury. He would be unable to move on his own anymore, and was lucky he could still breathe and talk unassisted. However, the concussive force behind the explosion would also send Yatoru and Gyoken flying back, knocking them out if their wounds didn’t do that for them… Unknown to Okami, the damage done to Yatoru would soon be the least of the eldest Kengan sibling’s worries.
In summary: Gyoken Uchiha had permanently lost his eyes and all use of his arms and legs due to a combination of hair needle senbon and shrapnel from his own kunai, with second and third-degree burns all over the front of his upper body and numerous hair needle senbon having bitten deep into his body, somehow all avoiding vital areas while still causing the maximum amount of pain without killing him. Gyoken would never be able to see or use his Sharingan again due to the senbon in his eyes also inflicting damage to the optical nerves, which lack the ability to regenerate or heal themselves. Yatoru Kengan had permanently lost the use of his body below the neck via two pieces of kunai shrapnel severing his upper and lower spinal cord at equal thirds of the way down his back, and is also short of a kidney on top of second and third degree burns all over the back of his entire upper body, with similar shrapnel damage being inflicted to his right arm and right leg as well for good measure. This was complete with similar wounds from Okami’s hair needle senbon technique to match Gyoken Uchiha and Nashiro. Nashiro herself, being by far the luckiest of the trio - if only just barely - only received temporary immobilization of the arms and legs via hair needle senbon to the knees and elbows, on top of the same amount of needles all over her body in areas that would inflict the most amount of pain without killing her. She had not suffered any form of shrapnel wounds or burn damage from Gyoken’s failed attempt to use kunai with exploding tags.
It was only after this was all done - and it was entirely flawless, due to all of the prior mentioned factors - that Okami would finally open his eyes, his expression turning to one of horror and shock as his amber gaze took in the carnage he’d just caused. Even though he’d wanted to end the fight quickly, he had NOT meant to inflict such wounds that - in all likelihood - had permanently ended these young men’s careers as ninja. Numbly forcing his legs to move, he would mold more chakra into his hands as he unsteadily walked towards the unconscious Yatoru Kengan and Gyoken Uchiha after jumping down onto the ground beneath him. The smell of blood and burning flesh would snap him out of his shock at what he’d just done, bringing him back to reality which would allow him to rush to their sides, swiftly forming the lesser - but thankfully still potent - Flames of Rejuvenation on his hands. These flames were made by manually mixing the Fire and Yang nature releases, and he allowed them to spread over both of the young men. Even while keeping an eye on his own available chakra since his flames were being remotely fueled by his own chakra in this case, his primary focus was on stabilizing them enough that they would not be in any immediate danger, and making sure that if nothing else they would not die from their burn wounds. He also had to very carefully remove the two senbon from Gyoken’s eyes while he was at it, thankful that even the Flames of Rejuvenation could burn on their own since it allowed him to focus on removing the senbon and shrapnel from their bodies. Okami was far from being a medic, but he knew enough emergency first-aid to patch the boys up as best he could. Unfortunately, even with his careful ministrations, there was no repairing the internal damage done to them. Yatoru was permanently immobilized and was down a kidney, and Gyoken was forever blinded and would be unable to move his arms and legs on his own. He only needed to take a cursory glance to know that out of the three of them, Nashiro was by far the most hopeful case and would only need medical attention and some muscle therapy if she wanted to have full range of movement again. However, the first thing Okami did was place specialized seal tags on Yatoru and Gyoken that made them unable to use chakra in any sense by suppressing their chakras to the point of being on the level of an untrained civilian child. This was done in case they woke up and/or proved uncooperative. After everyone was sufficiently stabilized and patched up, Okami would finally dismiss the Flames of Rejuvenation and shift back into a one-tailed state while releasing a long, drawn-out and tired breath before he spoke, also taking a look around him to see that the senbon he’d fired had made much of the ground and the trees within that area quite unsafe to walk on.
