The Godless Matron is home to many, resembling a micro-society for those who wish to live outside the typical 'rule' of the galaxy. The Lucrehulk-class battleship's massive hangars have been converted into dwellings as a result. Chute Town is the most notable of these makeshift towns. Many shops and storefronts have been constructed to take advantage of the higher volume of foot traffic. In addition, many ships and crews arrive into Chute Town to sell their "well-earned" commodities, weapons, or artifacts. It is commonplace to find the best and the worst gear the galaxy has to offer, it is only a matter of how big your pocket book is. The 'streets' are patrolled regularly by the crew of the Matron itself, leaving would-be miscreants to be more wary, lest they find themselves on the receiving end of a pirate's sense of justice.
It is built mostly out of spare durasteel panels from derelict ships, dismantled machinery, or any other source or material the pirates could scavenge. It spans the length of the massive portside hangar of the Matron, reaching from it's heavily protected reactor — hidden behind triple-reinforced blast doors and a guard retinue — all the way to the hangar entrance where the many incoming ships unload their cargo. It is more than a mile long, over five hundred feet wide and up to three stories tall, covering most of the floor. Chute Town's streets are a miniature maze, weaving in between buildings on several levels. Verticality is key for the masses of shops and bars to operate without interfering with one another. The main street is nicknamed Murder alley, mostly because all the weapon shops are prominently opened there.
Illumination banks are staggered along the walkways and buildings to provide enough light for the society to function. Still, the 'streets' are left dim with a low hanging fog built up from the collective humidity of so many people in one space. For those calling it their home, there is no such thing as 'off hours'. A large crowd bustles along at all hours, an exotic assortment of individuals from countless planets and the warring gangs that divvy up the territory within. It's the perfect place for those looking to disappear in the crowd.
Syntax
The flow of this sentence is awkward without the "the" added.
This should be a colon instead of an em-dash since you are listing who the source is.
I looked it up just to make sure this wasn't a dialect difference and found nothing, so it should be "aggressively".
The "in" is superfluous in terms of the sentence here. You would roll something between your fingers, not "in between" them.
Missing a use of "the" here, but could also have phrased it as: Skar growled in response to the trap he had walked right into. It's a flavour thing, in regards to phrasing, but you still need to denote "the".
Story
This is a good use of the narrative to build on the prompt you were given, filling in the blanks so to speak and making it more intuitive for your purposes without jarring the reader.
I'm not marking this against you as the intent is clear, but take a note of the differences in word play. Saying it materialized, and nothing modifying that, implies just that: it materialized. Unless he is teleporting it, which I know is not your intent, that simple phrasing doesn't convey the right image.
So, this is a minor hit but still a hit. The staff as a group had to discuss what your intent was with this passage. The power being used isn't clear. At first, I thought Concealment, but you don't have that. Perhaps her perception of time changed because of Amplification but that is +2... Then we settled on it being Terror combined with Aura of Fear. You need to be clear about showing us what is happening. The 'why' of Skar slowing down isn't clear just based on your narrative.
General Comments
I want to take a moment to praise your use of Story. What you did here is something that a lot of people complain about: "how do I make a compelling narrative in under 750 words?"
I should just point them to this post. You take the prompt, build upon it, and tie it into the history of your opponent. Of course, you have the home-field advantage... but you use it well.