As Young Merchant and Fire Dragon Princess learns that Central intends to install a new currency to prevent inflation, Winter King and Hero are informed an army lead by the Blue Demon clan has emerged from the portal to the Demon Realm and intends to attack from the south. Hero departs to confront the Blue Demon clan alone, allowing the Southern Alliance to focus on the incoming invasion from the north and much to his surprise, he reunites with Female Magician on the way there. Meanwhile in the Demon Realm, the Queen emerges from the chamber possessed by the spirits of the ancient Demon Kings and Chief Maid manages to push her back inside, despite having her right arm cut off by her. Young Merchant, accompanied by Fire Dragon Princess exposes to Merchant Youngster his intention to have the Southern Nations establish their own currency and extend the Merchant Alliance trade with the Demon Realm. In the occasion, Fire Dragon Princess reveals her true self to him, and that she is an envoy of the Demons of Gateway City. The White Night Cavalry led by the Crusader Commander launches a surprise attack to the East of the Iron Kingdom in retaliation for their serfs leaving the country for the Winter, Ice and Iron nations. However, the attack fails thanks the advanced tactics Warrior Youngster learned from Crimson Scholar and Female Knight. Upon learning of the situation, Female Magician instructs Hero to destroy the magic portal linking both realms after she drives away the entire Blue Demon army by having all of them teleported away at once. Passing through the hole created by the explosion, Hero arrives at the Demon Realm and realizes that both Realms are actually located in the same world, like two sides of a coin. As Female Knight moves on with her plan to have the local peasants offer spoiled fodder to sicken the Central Army's horses and hinder their plans, Hero finally reaches the Queen, just to be attacked by her possessed self.