You are all beating around the bush.
The answer is Beatrix's "Seiken" skill
The spark of the holy sword --Spark: "Thunder Shock" Holy Sword translates to Seiken from Japanese
Breaks and bends reality. Key word: Break--"Stock Break"
Beware the climax of the plot. -- Beware=hazzard + climax= Climhazard (I was running out of ideas)
For one may give a blind eye -- Refers to Beatrix, who wears a patch
To the shocking disaster before them. -- Shock.
The riddle as a whole referst to Beatrix's "Shock" when she realizes that she has indirectly betrayed her kingdom.
