Traumatized by the attack on Yumeji, Merry unleashes a powerful aura that destroys the dream world's moon, forcing Engi to retreat. Upon returning to the real world, Yumeji doesn't have any external injuries, but when he gets home he starts feeling pain and falls unconscious. As he dreams, Yumeji once again meets John, who treats his mental injuries. Meanwhile at school, Saki brings up how many students like Yumi have been suffering from "dream loss", in which they give up on their goals. John explains to Yumeji that it's because of him that Yumeji can enter other people's daydreams, and reveals Hercules is an evil dream demon who tempted many others into entering the real world. He also mentions that Hercules may know something about Merry, who allegedly entered the real world without a vessel. After Yumeji's wounds heal, John warns him about another strong dream demon named Mystletainn before he wakes up to a worried Merry.