You are watching Ep 3.
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After the battle with the Witch Cult, Subaru travels back to Crusch’s manor with Emilia, when he discovers, to his horror, that everyone has forgotten Rem. Earlier, she and Crusch were ambushed by the Sin Archbishops of Gluttony, Lye Batenkaitos, and Greed, Regulus Corneus. Although they fought fiercely, both ended up having their existences eaten by Lye. This caused Rem to fall into a coma, with noone but Subaru remembering her, and Crusch lost her memories. After learning what happened, a devastated Subaru commits suicide in hopes of going back in time to before the ambush to prevent it. However, it fails as he returns to after the ambush had already occurred. Subaru later attends a meeting with Emilia, the amnesiac Crusch, Felis and Wilhelm. After a heated discussion, they decide to continue their alliance. After the meeting, Emilia comforts Subaru as he grieves for Rem.