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No, Otane does not betray Zatoichi in Zatoichi the Fugitive (1963). In the film, she is married to a ronin named Tanakura (not Tatekichi, who was her brother in the first film). Far from betraying Ichi, Otane attempts to prevent the conflict between him and her husband. When she pleads with Tanakura not to fight Zatoichi, Tanakura kills her. Zatoichi subsequently kills Tanakura in the film's climax, partly in revenge for her death.
Yes, Otane does betray Zatoichi in Zatoichi the Fugitive (Shin Zatoichi monogataru).
The betrayal is not driven by spite or hatred, but by her deep desire to protect her husband, Boss Tatekichi of the Shimonada gang, and maintain her new, stable life.
Here are the specific details of her betrayal:
Otane is Zatoichi’s old flame, and her husband, Tatekichi, is intensely jealous and fearful of Ichi. Tatekichi uses Otane’s past relationship with Ichi to his advantage, pressuring her to act as an informant.
Otane reveals Ichi's movements, intentions, and even his location to Tatekichi. This allows Tatekichi to constantly monitor Ichi and keep him trapped in the local power struggle, ensuring Ichi remains a potential tool for his gang’s rivalry with the Shimo-Goretsu gang.
The most concrete betrayal occurs when Ichi realizes the extent of Tatekichi's duplicity. Tatekichi never intended to hire Ichi; he intended to use Ichi as a pawn to kill his rival, and then kill Ichi immediately afterward to prevent retaliation.
Otane is aware of her husband’s plan to murder Ichi. When Ichi confronts her about Tatekichi's murderous intentions, Otane tries to lie and convince Ichi to leave the area immediately, hoping to save him while protecting her husband from Ichi’s deadly wrath. Her actions were designed to shield Tatekichi from the consequences of his planned treachery, even if it meant misleading and endangering Ichi.
In the climax of the film, she ultimately sides with her husband’s life over Zatoichi’s safety, forcing Ichi to face her husband’s men alone.
The summary completely misses the tragic ending of the character, claiming she sides with her husband when she is actually murdered by him.
The summary misidentifies the husband as Tatekichi (her brother from a previous film).