The Fairies' Subculture

The Fairies' Subculture is the second story arc of the Humanity Has Declined series and covers episodes 3 and 4 of the anime.

Summary
The Mediator is visited by an old friend from her school days, Silver, who turns up in an expensive car and claims she is working on The Human Monument Project, despite admitting she has no actual interest in human history. After investigating an old mansion, however, she discovers a disc with data and comes into the possession of a printing press. The disc turns out to contain yaoi manga, which she begins to distribute around the world through the help of food trucks.

This nets her fame and brings back a hype for manga, which Silver utilizes to print even more stories and begin creating her own. As the hype spreads, rival publications begin appearing that tell their own yaoi stories and carry similar names. This competition inspires Silver to be even bolder and fuel the hype further. Meanwhile, The Mediator begins to worry that this new trend might inspire the fairies to participate and attempts to persuade Silver into stopping. Since she now lives a life of fame and excess, she ignores these warnings.

The demand for yaoi manga soon surpasses the truck's capabilities to deliver, leaving Silver without a means to distribute her product. This problem is resolved when she decides to invite her rivals to the village in order to throw a convention, drawing countless people to the village. After the festivities are over, The Mediator finds a lone manga lying around and, upon touching it, is sucked into a white void where she discovers Silver and The Assistant. The white void is actually a manga panel and the three realize they can manipulate it and draw within it. Soon after, they witness a ranking board, which dynamically shows the most popular manga currently in circulation. Believing they can leave the book after becoming #1, Silver goes into a frenzy and steers the team into creating a storyline consisting of non-stop twists and surprises. While initially a success, their manga is overtaken on the scoreboard when audiences tire of the now-convoluted story.

After exhausting their gimmicks, the team finally gets together to retcon and restructure the story. It proves to be too late, as their manga hits the bottom of the rankings, the art style rapidly declines, and the crew is ejected as the fairies comment on the cancellation. Everybody then wakes up in the real world again.

Trivia

 * During a scene meant to be a fantasy battle, The Mediator goes off-script to name-drop the show.
 * The story has a lot of commentary on the trials of manga artists.