Summary
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Shiro challenges Mephisto to become an Exwire and refuses to be a vessel for Lucifer.
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Mephisto reveals the asylum's true purpose as a facility for the Demon Kings' vessels.
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Yuri and Shiro meet again in an intense battle, showcasing Shiro's powerful abilities and aggression.
Second episode The Blue Exorcist: The Blue Night Saga is finally out and expands further on Shiro and Yuri's early life. This episode also reveals the main truth about Mephisto and his attempts to create several clones of the Demon King to find a new host for Lucifer.
Shiro is also one of these clones, and during his confrontation with Mephisto, he demands to become Exwire. The plot continues to thicken this season and one can only praise the anime for its excellent script this time. Coupled with such clean and amazing animation, it really is a highlight Blue Exorcist.

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The truth is revealed
Shiro challenges Mephisto
As the episode begins, Rin sees Shiro and Mephisto talking. Shiro wants to become an Exwire and gain his freedom, but refuses to become a body clone for Lucifer. Once every 15 years, an Exwire appeared from each item group, and Shiro said it met the criteria.
Becoming an Exwire would mean that the number of experiments he gets would be reduced, and if he becomes a paladin, he'll end up with all the money and power in the world. Shiro insists on not becoming a mere victim to save people.
However, Mephisto claims that becoming a Paladin does not mean he would be free and his life would be in danger. Besides, all the previous experimental individuals had died trying to become a paladin, and even if he succeeded in becoming a paladin, he would be no less than a slave to the true order.
The dark truth that the asylum hides
As the episode continues further, Mephisto reveals to Rin that the Asylum, which is supposed to be an orphanage that also trains orphans to be exorcists, is actually just a facade as it hides a research facility underneath known as Section 13. Section 13 is responsible for making vessels for the King demons. So Mephisto was actually the enemy the whole time, which makes for a completely insane storyline. Mephisto goes on to explain that all he did was buy time for Lucifer, who is in a very bad state.
In the next part of the episode, Rin and Mephisto visit Lucifer. Scientists are constantly working to keep Lord Lucifer alive, applying all kinds of potions and drugs. Rin is extremely shocked to learn that all the monstrous experiments were meant to keep Lucifer alive. But as fundamental as they were, the experiments were a necessary evil, because if Lucifer gets the perfect body he desires, no one can stop his wrath.
Mephisto reveals that countless clones were made to become Lucifer's vessels, but it never worked, so they developed potions that can grant Lucifer immortality. However, getting these potions from the clones was an extremely painful procedure. Watching the amount of cruelty Shiro had to face was truly heartbreaking.

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Yuri and Shiro are reunited
As Rin walks out the door, she finds herself in the middle of an ongoing mission to exorcise a demon. Here we witness a fairly grown Yuri being trained to become an exorcist. The Exorcists and Exwires arrive and Shiro is among them. When Yuri sees him, she quickly rushes over to greet him, but Shiro callously tells her to stay away.
When the demon arrives, everyone starts trying to train it, but the star of the show turns out to be Shiro, who shows off his incredible abilities and rushes to kill the demon himself. Even though he is so powerful, he is still extremely evil as he mercilessly kills harmless little demons called Greenmen, much to Yuri's dismay. As the episode ends, we also see blue flames, which if you remember from earlier, actually represent Satan.
Another amazing episode
This episode shows how Shiro has always been a strong and capable individual. Even though he lived a terrible life, he still made great efforts to avoid ending up with the other clones. We also learned that while the experiments Mephisto was doing were completely inhumane, they were necessary to save the world.
The action sequence of the battle between Shiro and the demon is done beautifully and the animation is amazing as always. The voice acting was also pretty great, especially Shiro's voice actor who did an incredible job of portraying Shiro's bad temper and aggression.