Please remember to put Fatal Frame Remake items, people, locations, etc in the Category: Deep Crimson Butterfly.
The Repentance was the disaster which both destroyed Minakami Village and engulfed the surrounding region in Darkness. It was the result of several failed rituals in a row, the final blow dealt by Sae Kurosawa being killed, but not at the hands of her twin sister. She was instead hung by the villagers in a final desperate attempt to avert disaster.
As a result, the Hellish Abyss spewed forth Darkness, and a corrupted Sae Kurosawa and the Kusabi emerged from its depths. Together they spread throughout the village, Sae laughing hysterically as the Kusabi slashed and slaughtered any survivors crossing their paths. Many of the villagers were killed in the Great Hall of the Kurosawa House. Those that weren't murdered succumbed to the Darkness and went mad or wasted away.
This was only the beginning. The Repentance erased the village completely, and it vanished from its spot in the forest. The village itself was caught up in an endless night, and the events prior to the failed Crimson Sacrifice Ritual continued to repeat over and over again.
Poor lost souls who passed the Twin Deities Statue, the last remaining trace of the village, were drawn into the village and trapped. They too became caught up in the endless night and played out their own individual roles.
It was not until twin sisters Mio and Mayu Amakura stumbled upon the Lost Village and were caught up in its events that there was closure. Mio took the life of her sister, performing a final Crimson Sacrifice Ritual that calmed the Abyss and satisfied Sae's spirit.*
This follows the Crimson Butterfly Ending of Fatal Frame II. However, the Lingering Scent Ending could also be a canon ending. For the sake of clarity and resolution, the former ending is used in this description.