"S'fine," Setsuna insists, and points at the Master, "Lika he said."

He couldn't really explain the blood problem, as he had no idea what caused it, and it wasn't so great to give everyone your main weakness.

When Setsuna first sees the item, he jolts away and insists, "M'fine," with more urgency. Besides, even if the wound was healed, the sleepiness would remain until Setsuna managed to snap out of it, or splashed some water on his face.