Some interesting theorizing on FA that the Puppetmancer may actually be the Big Good fighting against corrupt and evil kami. Another theory that this spirit isn't the Puppetmancer at all but Omin Himself, locked away from the others.
That'd be one hell of a plot twist. But my feeling is the same it's been since early in Chapter 1: Something is WRONG with this world and they've not even started to grasp what the hell is so rotten at its core. Their encounter with Suzocon-sama did not exactly breed confidence.