Natsu and Gajeel challenge the still-exiled Laxus to a fight. Wendy suggests they have a showdown the next day in the hopes that they will calm down and lose interest, but it only excites the rest of the guild, who hold a festival for it. Almost as soon as their battle starts, however, Laxus beats Natsu with a single punch and Gajeel runs away in fear. While the rest of the town searches for Gajeel, the guild is visited by three figures resembling Hughes, Sugar Boy, and Coco from Edolas. Meanwhile, Lucy decodes the writing on the rod with Levy's help and discovers that it is the hand of a legendary clock.