Iyo's spirit was tied to reiki, she's a 2000 year old spirit, literally, and she possess the dragon's eye. She pretty much sent her spirit into the future using reiki as the medium
Originally Posted by total_station101
basically, what happened is that Souhaku and Nagi were in Nagi's mind, Iyo used the dragon's eye to send her ki and those of aya, bob and the others inside Nagi's mind as well. Then, as they were fighting Souhaku, we saw flashbacks of things that happened 2000 years ago between Souhaku and Iyo(Souhaku is 2000 years old as well). While that happened 2000 years in the past, to Iyo's spirit, it was happening at that moment to her physical body
The eye-bleeding is simply caused by the dragon's eye losing its power while souhaku took her eyes
oh, ok, thanks. anyway, i re-read that chapter. last panel, masataka said i believe our fate is not predetermine.....hahaha what a joke in the end. coz they played maya's death as predetermined. the plug to nagi's socket, hahahaha, then the fuse blows up.