A Universal Time Christmas update dropped as a New Year's present and it has brought back Killua and Candy Cutlass abilities with a rework. Among these, Candy Cutlass has received a brand new moveset with a honed blade. Here is how you can get this time-limited ability in A Universal Time 4.1 update.
A Universal Time Candy Cutlass Ability Obtainment Method
First of all, go to Santa Claus and talk to him. You will find him behind the blue colored building near the Park in the direction of the Port. He will give you the quest to defeat 20 Hooligans and once you have done it, go back to Santa Claus to get the next quest.
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He will ask you to defeat the new raid boss, Grimpus that spawns every hour at the Ice Fortress and bring him Candy Cutlass Blade, an item dropped by the boss. You can teleport to Ice Fortress area by talking to Bawxstar in the Park.
Go to the top of the mountain in front of you and you will find a fortress across the bridge. Go inside it and Grimpus will be waiting for you once every hour. You need to deal atleast 10% damage to receive rewards and there is a 45% probablity of you getting Candy Cutlass’ Blade as a drop.
Once you have Candy Cutlass' Blade, go back to Santa Claus and talk to him to get the Candy Cutlass ability.