Ooh, so Rod and Thane knew the truth. And they dearly love their little sister. Enough to conspire against the queen herself.
Yu, who was a political slave to her destiny laid out by her extremely ambitious mother, finally broke free. She threw away nearly everything to gain personal freedom, but now she can start over with a new life that she has control over. Better a life from zero with an opportunity to be happy than a full life with guaranteed unhappiness for a lifetime.
Misha likewise basically threw away everything for love (even willing to be bi-curious, based on her words, though best case she's closeted bi) and apparently joined Yu in the convent. Yu becoming a boy was probably a dream come true deep inside for her if she were completely straight, but the fact that she threw away that selfish desire to let her loved one live free is a thing of beauty. A toast to this ship sailing. May a beautiful romance be in store for them.
The plotting queen is devastated at the unraveling of her ambitions, but I'm surprised she hasn't done something like publicly push for Rae's execution or some equally harsh sentence. She did try to have her secretly poisoned, but given her high position I wasn't expecting some covert methods to be used.
I guess it helps that her reputation was salvaged by the official story sent to the presses, sacrificing Yu's own reputation in exchange. She has renounced her place in the line of succession anyway, her reputation as a royal means nothing now that she's been shipped off to a convent to live a private life far away from the prying eyes of the public.
Heck, I thought even expulsion from school isn't off the table, but Rae has also many dependable allies in high places. So the king himself has decided he can use her talents, and instead of punishment has recruited her into his service.