Dagar suffers in agony from the injuries inflicted on him by Kenshiro while Ken and Rei approach Blue Town. They are attacked by a young group of rebels, but their leader, Nova, asks for assistance in rescuing their female friends and family from Yuda. They free the women, but find that the "Yuda" at Blue Town is a decoy. The real Yuda is revealed to have been hiding in his castle all along, and he sacrifices Dagar to implement his deception.