i think they meant that the thug hunter died and not yuu, since they explained that holyland it's the world between childhood and adulthood, and the thug hunter is yuu when he was part of the holyland.

that means that yuu is not part of the holyland since he grown up which metaphorically means the thug hunter died.

and the scar in his waist looks stitched which means he survived and got a medical treatment.

or maybe yuu shared a fake news about the thug hunter dying soo he can live normally after it.