>>87797105Hanzo was pressured by the Yakuza (of which he had just inherited leadership of) to bring Genji under control. Hanzo was zealously loyal to his father's teachings, and attempted to bring Genji back under the control of the Yakuza.
Genji had already been noticed as a very strong individual with no real affiliation by Overwatch, who were keeping an eye on him.
Hanzo Confronted Genji and ordered him to start acting appropriately for a Shimada, Genji refused and Hanzo ended up killing him, or believing he had done so. Hanzo left, filled with grief and regret.
Overwatch arrived on the scene and recovered the mortally wounded Genji. Mercy played a critical role in rebuilding him into the Cyborg he now is, (frequently referenced by Genji in game) and Genji joined Overwatch, under an assumed name, as he did not want to ever be affiliated with the Shimada or Hanzo. After Overwatch was disbanded, Genji roamed far and wide, growing increasingly angry until he became a pupil of Zenyatta and found peace.
Meanwhile Hanzo had become so grief ridden that the Shimada syndicate shattered and he was overthrown. This was why he broke into the castle, fighting his own families mobsters, during the Dragons Short. Genji had been waiting for him, and thats how the Short plays out.