Pegasus has stopped playing around in his duel with Kaiba, and while his trump card—Toon World—may seem like a joke, its effects are no laughing matter. His monsters become virtually untouchable, safe in Toon World's pages when not attacking, and when they are attacked they simply dodge out of the way. Not helping matters is when Pegasus turns Kaiba's own Blue-Eyes White Dragon into a Toon version of itself.
Kaiba stops looking at his hand to stop Pegasus from seeing it (unfortunately, Pegasus looks through his mind to know his cards, as he'd memorized them) and draws a second Blue-Eyes. While their attack points are equal, the Toon dragon stretches out of the way, and Pegasus quickly strengthens it with Shine Palace. Kaiba's only hope is to defeat the Toon Blue-Eyes now. With an image of Mokuba guiding his hand, he draws Shadow Spell, which immobilizes and weakens the dragon enough to finish it off.
Unfortunately, Pegasus simply plays Dragon Capture Jar to steal Kaiba's other Blue-Eyes, then sets the Dragon Piper to bring it forth. Panicking, Kaiba orders his Swordstalker to attack the Piper... and Pegasus reveals Doppelganger/Mimicat, which lets him copy any Spell card. He picks Kaiba's Crush Card, infects the Dragon Piper with it, and watches with glee as every monster with over 1500 ATK in Kaiba's deck is destroyed.
With almost all of his deck gone, Kaiba's only move is to revive Saggi the Dark Clown. Pegasus summons Bickuribox, which easily destroys it. With no more cards to play, Kaiba loses by default. Pegasus seals his soul into a card as punishment, ordering his men to take his empty shell away. Yugi and his friends are horrified, and Yugi and Yami Yugi demand Pegasus answer for what he's done. Pegasus himself is merely amused by the proceedings.
This episode contains examples of:
- Adorable Abomination: Pegasus' Toon World Card can morph any monster he has in his possession into this. He sees them as adorable, but Kaiba sees this method as an abomination, especially when one of his Blue-Eyes is transformed.
- Crippling Overspecialization: As powerful as Kaiba's deck is, due to all but one of his monsters having over 1500 attack pointsnote , it can easily be wiped out by a Crush Card.
- Curb-Stomp Battle: Last episode, Pegasus goes easy on Kaiba and deliberately allows his Life Points to go down. The moment he puts his Millennium Eye and Toon World Card into play, he completely humiliates Kaiba and snatches victory from his grasp, as well as his soul.
- Defeat Means Menial Labor: After capturing his soul, Pegasus orders Kaiba to be taken away to do menial labor.
- Here We Go Again!: Using his Dragon Capture Jar/Dragon Piper combo, Pegasus intended to turn Kaiba's second Blue-Eyes into a toon like the first one, starting the "fun" all over again. Kaiba attempted to stop it by destroying Dragon Piper before then, but unfortunately, Pegasus had a contingency plan.
- Hoist by His Own Petard: As Joey notes, Kaiba ends up getting done in by his own Crush Card.
- Hope Spot: Kaiba drawing Shadow Spell at a critical time helps him destroy the Toon Blue-Eyes, but in the end it only buys him a few more turns.
- New Powers as the Plot Demands: Crush Card is able to infect Dragon Piper despite the monster being a FIRE monster and Crush Card can only infect DARK monsters.
- Rage Breaking Point: Pegasus taking Kaiba's soul is the last straw for Yami, and he vows to make Pegasus pay for his actions.
- This Is Reality: Kaiba tells Pegasus, "This isn't one of your harebrained after-school cartoons!" Okay, technically...
- You Can't Thwart Stage One: Kaiba losing his soul to Pegasus only puts more emphasis on Yugi's goal to defeat Pegasus.
- Your Soul Is Mine!: After defeating Kaiba, Pegasus captures his soul and now he has the souls of both Kaiba brothers in his clutches.
