Board Thread:BlazBlue: Centralfiction/@comment-8695373-20161009092113/@comment-28950924-20161011042217

Terumi killed Hakumen (or destroyed Jin's soul in the Susanoo unit) and took the body back, he then merged with it to become Susanoo.

Ragna draw out Terumi's soul in the Susanoo unit and jump into the Boundary where they continued to fight and Ragna killed Terumi. It's likely that Ragna is then drifted forever in the Boundary.

The Susanoo unit was then thrown into the cauldron I think. It's not particularly clear but it seems there are 2 Tsubaki at the end, 1 was with Noel and Makoto at the church while there's another, presumably Izayoi who since took up Ookami and appeared behind Rachel.

Rachel believe Ragna will be back, at the very last moment of the ending credit, Ragna's sword on his grave is missing so you can interpret that however you like.

The Susanoo unit is lost at the end but the Ookami is in Izayoi's possession, there's no indication whether Izayoi has inheritted the Susanoo unit nor there's any reason for her to do so "in order to inherit the Ookami sword". Remember the sword is not a bundle package with the Armor Unit, they're 2 separate things.