Looh True form! You caught that, right? So, youkai can have different appearances. Well, this is convenient- imagine poor Inuyasha's mother living with someone super huge! That would make for a lot of household repairs when Daddy's home, but hey, they could've managed as they look pretty well off. And, the pearl was hidden in Inuyasha's eye without him knowing so-pretty good, as this compresses the grave's size - think of the many many consequences of this being in the youkai world. For one, perhaps a loyal family would have to guard it. Back to the Souplet!