No, you did not know demons existed. You were kept in a rather sheltered life. Which is the main reason you were running through the woods. Trying to get away from your home, having no idea if you were being followed currently. You knew better than look behind you, not wanting to look behind you just to trip over a stray root or something of the sort. Especially from how dark it was, you only had the moon light to guide you. But the trees covered a lot of the light.
That's when you heard a fight going on. It was hard to make out what was happening but you tried to stay away from it. Trying to avoid anyone. But thanks to how quiet Yoriichi was when fighting, it was hard to pinpoint where the fight was happening exactly. With your luck, you ended up right where the fight was.
In front of you was a clearing, you stopped just before it so you weren't seen just yet. Though you could see a man with short, black hair, looking fearfully up at the man with long reddish hair. One man held a sword and the other was disarmed. With how fearful one guy was and how intimidating the other man was, it was hard to tell what was happening.