After I saw this I saw this picture from another artist:
post #1500722

My mind instantly assumed the following:
Tenryuu sunk
Tenryuu was transformed
Tatsuta "killed" Tenryuu
Tenryuu however could be saved (The pic of the link I posted)

I'm sorry but I love happy endings :P
(Haven't lost a single ship yet, and it'll stay like that >:|)