Blank Area?
Indeed.
Judging by the characteristics exhibited by the Land of White Bone and the Booksmith areas just now, it would seem that the Genesis Strange Story filled Wangcheng City to the brim, leaving no vacancies to speak of.
After all, given the abilities of the Genesis Strange Story, many such tales possess influence that covers an entire city. Now that they're restricted to such small areas, it's like a colossal hound caged within a rabbit hutch, and around it, identical cages breed large dogs. The resulting effect is naturally that territories of Genesis Strange Stories are tightly packed against each other.
Thus, the emergence of a blank area around the "Sword" territory becomes terrifyingly meaningful.
Even the Genesis Strange Stories seem to repel the "Sword's" ability, unwilling to draw near it.