User blog comment:FairyRaven/Fairy Tail Chapter 362: Natsu vs. Jackal, Review and Commentary/@comment-1359322-20131129112217/@comment-1359322-20131129130820

Well maybe i'll just try a crazy theory then, what if Happy survived the explosion because Jackal allowed him too. Maybe he can hid himself inside a person or an animal's body, and only did so to gain info on the White Inheritance.