Prior to the confrontation between Yang and Neo, Team RWBY, with Ruby Rose still on the top of the train, drop down into the train to disarm the bombs. Upon making it inside, Weiss Schnee hands Blake Belladonna a magazine filled with what seems to be Dust vials.
As the trio runs forward, Neo drops down from the ceiling, before simply standing in their way. Yang orders her two teammates to go on ahead while she stays behind to take care of Neo.
As Blake and Weiss run past Neo, Yang unleashes a ranged shot, prompting Neo to flip backwards so as to avoid the blast, landing in a crouch. Yang proceeds to walk up to Neo as she stands up, where the two stare at one another, Neo with a smile and Yang with a frown. Yang tightens her fist, and throws a simple forward punch towards Neo's face, which is deflected with a white flash of unknown origin from Neo, causing Yang to stumble back. Neo opens her umbrella, and the fight begins.
Yang dashes forwards, unleashing a flurry of several punches, resetting each time instead of redirecting her blows, as Neo simply dodges each attack, moving her body swiftly in order to avoid them in a very laid back, but extremely effective style. With every unsuccessful punch, elbow, and kick, Yang continues moving forward as her last three blows bring her to a knee, where she attempts a roundhouse kick, allowing Neo to deliver a spinning hook kick, knocking Yang to the ground, the former's guard completely open on the left side.
While on the ground, Yang growls in anger, to which Neo responds by performing a drop kick. However, Yang dodges by rolling away, and subsequently springing up to attack once again.
Neo counters through a pull in redirection of force technique, pulling Yang's arm in with her own left arm, and performing a well-executed ax kick to hit Yang on the chin, before kicking Yang in the stomach with a perfect side kick. Neo then begins pushing Yang back via her umbrella, now on the offensive, as Yang tries to counter her movements with Ember Celica. Neo is able to effortlessly push Yang back against a wall, until the latter shoots a blast directly towards the former's feet. Neo, however, simply backflips effortlessly, and she lands perfectly on a metal container, before sitting, waiting for Yang's next attack.
As Yang approaches her, Neo smiles, taunting her, before Yang unleashes another attack. Neo counters, and begins kicking Yang back. Yang unleashes another blast from Ember, which Neo blocks. The two spar briefly, hand to hand, before Yang grabs Neo's foot, and pulls her closer to throw her, only for Neo to perfectly counter, before grappling Yang and using her momentum to throw her into the ceiling, knocking her unconscious. Neo slowly approaches, pulling out a small, cylindrical blade from her umbrella. As Neo raises the blade, ready to kill Yang, a mysterious masked lady clothed in black and red drops into the car from a portal.
As the woman charges toward her and swings her sword, Neo moves away, just barely managing to dodge the strike. Right when Neo stops, the masked woman spins around and slashes her across the abdomen before she can block, knocking her back. The woman sheathes her sword and changes blades in her sheath's revolving chamber. When the woman draws her sword again, the blade telescopes, becoming even longer than the blade she had just used on Neo. Upon realizing how dangerous the situation had become, Neo seemingly teleports away.