Episode Title:
Altercation at the Auspicious Auction
Episode Description:
Team RWBY conclude they are in the “Ever After”, a fantasy world from a story called "The Girl Who Fell Through the World”, who's protagonist Alyx returned to Remnant through the Tree at it's heart. Following the path, the group find a village of living toys where a raccoon, the Jinxy Peddler, auctions off items disguised by illusions - including Yang's stolen arm and Penny's glass sword; after losing the bids, Little helps the group steal the items and they escape in the ensuing riot. Learning Alyx beat the Red King at a game to progress, Ruby gives Penny's sword to the King’s guards as a birthday gift to gain audience at his party, dejectedly telling the group not to bother diverging from Alyx's path - despite Blake's fears of causing a war like Alyx did.