At court, Jim of the Ancient Mermaid Clan secures Her Majesty's permission under the Hundred-Lake Law to claim the mermaids as his property. He grabs Linda, provoking the girls to declare a fight to the death while some urge Jason to run. Jason refuses to flee, invokes a System command to remove his disguise, and reveals he has evolved into a lesser dragon. The clan is stunned—none managed such evolution in a thousand years. The episode ends with the discovery that another lesser dragon lurks in Grain Marsh Lake, immediately complicating the aftermath.