The lost Spirit Sword is said to be imbued with the essence of one of the land's most cunning warriors. Coming from a humble beginning, Ho-lu, as he was called, led his people in an attack against a powerful mage and his armies of skeletons.
Using unparalleled tactics that have long since been forgotten, Ho-lu managed to get behind the skeletal hordes with a small force. He smote down the mage just as he was amassing power to defeat Ho-lu and his men. A great explosion resulted and when all settled, the skeletons were merely piles of bones. All that remained of Ho-lu was his sword, which now glowed with a faint light. It is believed that somehow his essence merged with the cold iron.
The sword was immediately coveted by many. After several power struggles and a time of anarchy, one particularly wise magistrate came upon the sword and hid it. Its power, and the chaos that came with it, were not seen again.