Bernard gets awoken by a bunch of bandits riding past and heading for Prideaux's house. The bandits tie up the Prideauxs and use a ruby to hypnotize them into revealing where their wealth is. Lolita interrupts them and snaps her parents out of it. Zorro is outside the house waiting for the bandits and takes back Prideaux's money, but he too is hypnotized by the ruby and gets injured in the process. The army arrives and blames Zorro for the robbery. Lolita cries in her room refusing to believe Zorro is a thief. It's revealed that Lieutenant Gabriel hired the bandits in an attempt to be a hero for Lolita while also framing Zorro...