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If the player stands too close to their opponent after victory with a Naginata or Broadsword, blood will spray out of the weapon's contact point with the fallen combatant during their victory pose. This is likely a collision detection glitch.
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Attachment The Japanese release features censored blood effects, being yellow instead of red as seen in all other versions.
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In a 1997 Dengeki PlayStation interview with the game's director Kunihiko Nakata, he explained that the core idea was to create a weapon-based fighting game centered around the concept of "ichigeki hissatsu" (one-hit takedowns) that would still feel fun. The goal was to make each hit feel decisive and impactful, giving players a sense of immediate victory when they land a strike that wins the match. This direction also influenced the choice to use swords as the primary means of battle in the game as they felt it made it easier for players to understand ichigeki hissatsu:

"I like fighting games with bare fists and staves and all, but I always felt it was weird when you'd take a bunch of damage in a match, and despite only having a sliver of life left, you could still fight with the same vigor. And that's why we wanted this to be a "one-hit kill" game. We could have accomplished that with just punching, but a cutting weapon is more visually convincing."
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In a 1997 Dengeki PlayStation interview with the game's director Kunihiko Nakata, he mentioned that while they had a partial idea of what they wanted for the graphics, specific elements like the castle ruins map were conceptualized during the development process, and that the details of the world were worked out while they made it rather than being planned from the start.

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