He does NOT appreciate all that smack talk, Natsu. And with every word he just gets angrier and angrier, his rage blinding him to the presence of anyone else in the room but HIM. With Gray completely consumed by the demon he didn't have the irrational desire to show himself up to his better, but as a demon, all he cared about was this little know nothing talking big and he wanted that smug smirk to be crushed. His swipes grew wilder, more angry and erratic, discarding words and taunts in favor of daemonic snarls.

Lucy gave Natsu a 'You better know what you're doing' LOOK(tm) in response to his grin, and turned her attention back to the cage where the little fairy was watching her try and break the lock free. Not difficult when it was a cage made for fairies - as long as she didn't use magic. A few tugs and then a SNAP as the lid came off, and the fairy flitted out elated. "There, got it!" Lucy crowed happily.

And then the cavern exploded inwards with the dragon in the opening, eyes immediately locking onto the demon. The demon who turned to glance over at Natsu-dragon and tensed, baring his teeth. Luna slipped past the dragon's head on that note, and at the same time, the fairy Lucy had free'd immediately darted out the opening, zipping by without so much as a thank you. Luna glanced after it, "Was that a..." Never mind. She glanced over to Natsu, just as her father started to inhale. "Come on! Come out of here, quick!"