The Flesh Golem made use of the Blood Fiend's strike to pulverize every last bit of itself in an explosion of death attribute demonic energy as it self-destructed. All of the demonic energy locked into its flesh, keeping the Golem together, was released in a cloud of black smoke that filled the pool of blood supporting the Blood Fiend. The cloud of death also seeped into the Blood Fiend's body and started clashing with the blood attribute demonic energy.
Toz and the others stepped back even further when the Flesh Golem self-destructed out of fear that the explosion of black fog would be indiscriminate in its attack. However, it turned out that they didn't have to be so cautious. All the Flesh Golem's demonic energy targeted the Blood Fiend and only the Blood Fiend. The mist of death attribute demonic energy swirled around the Blood Fiend and fought to corrode it, similarly to how the blood attribute demonic energy tried to corrode the firestorm.