Defeated in one turn by the Duel King Jack Atlas, Yuya is attended by paramedics. In the audience, Security prepares to arrest Yuzu and Yugo, but other guards step in from the Executive Council to protect them, since they're enlisted in the Friendship Cup, and take them to the lodgings for the duelists in the tournament. Yuya awakens in the lodgings and is contacted by the Executive Council via hologram, who tell him that they will be keeping them under surveillance in a penthouse complex that's part of their headquarters. The entrants can live here while they're in the tournament, and once they lose they must leave immediately. The Council relays these same arrangements to Reiji, and explain it is due to their suspicions of Jean-Michel Roget that the entrants will be kept close to the Council. Reiji agrees. Locked in his room, Yuya sees his Odd-Eyes Pendulum Dragon and Dark Rebellion Xyz Dragon are glowing and pulsing; in another room, Yugo's Clear-Wing Synchro Dragon is doing the same, but he doesn't notice. Yuya remembers the dragons reacted during his encounter with Yuto and his subsequent duel with Yugo, and realizes Yugo must be here with Yuzu, but his attempts to call her fail.
Yuya thinks back to Jack's words during their duel, that Yuya's Entertainment Duels are just self-satisfaction. Yuya realizes Jack could have stopped his first attack with his Trap card, but let Yuya attack and damage him to create more tension and excitement, and to use his other Trap to set the stage for Red Demon's Dragon Scar-light's summoning. Yuya surmises he played right into Jack's hands from the start, and he really was no match for him. Yuya questions how he can live up to his father's legacy and stop the dimensional war if he duels like that, and sees a card slid under the door. On the other side of the door, Yuya's guide from the duel yesterday, Sam, explains. Jack was a symbol of hope to the people in Commons, for winning his way to Tops in the Friendship Cup. However, the fame and fortune went to Jack's head, and when Sam got to meet Jack and told him he wanted to be like him, Jack gave Sam a card, Tuning Magician, telling him it was suited for him — a low Level monster with weak power. Sam now gives Tuning Magician to Yuya, to use against Jack.
Meanwhile, Melissa Claire announces the 16 entrants in the Friendship Cup, and the first two duelists to face off are decided; Gongenzaka and Crow. The two leave their rooms to head to the arena.
This episode contains examples of:
- Anti-Hero: While the Executive Council remains far more reasonable and heroic than Roger, they show a slightly less heroic side here.
- Base-Breaking Character: In-Universe. People in Commons are split on if Jack is a traitor who sold out to Tops for money and power, or a hero to Commons for demonstrating they really can win their way out of the slums.
- Breather Episode: There's no duels, just Yuya lounging about in his room as the lodgings of the entrants are explained and his Character Development for the season begins.
- Broken Pedestal: It's quite clearly shown here that Jack became a dick after winning his way up from Commons.
- FaceHeel Turn/Took a Level in Jerkass: After he won the Friendship Cup, Jack let it go to his head and is now is an elitist snob like everyone else in Tops.
- Gilded Cage: Played with. The entrants are being kept under surveillance in a penthouse complex that's part of the Executive Council's headquarters, and are warned they will be removed once they lost in the tournament. However, it's explained this is done for their protection, as they want to make sure Roger can't get to them.
- Kick the Dog:
- Approached by a kid in Commons who idolizes him? Jack gives him a weak joke card and tells him it's suited for him.
- The title the Friendship Cup gave Yuya for losing against Jack? A failure of an entertainer, a rookie, and a worthless scum. Which is especially cruel as Yuya lost against Jack, who has been undefeated for 3 years. Even the Tops say this is too much.
- Made of Iron: Yuya, this episode. While he was knocked unconscious from Jack's attack. Said attack launched him nearly vertically in the air and he landed on his neck. And he woke up without any injury at all.
- Not So Stoic: Roget slams his fist on his chessboard when he finds out the Executive Council is overriding his authority again. While he was obviously upset the first time, now he's clearly angry for it.
- Ship Tease: A lot between Yuya and Yuzu. From Yuzu desperately trying to get to an unconscious Yuya, to Yuya desperately screaming in the hopes that Yuzu can hear him.
- Truth in Television: In his duel with Jack, Yuya went all-out to try and win quickly, while Jack planned and executed a careful strategy that clinched the duel. Real life dueling tends to work the same way; you can't just duel turn to turn, you have to plan out your moves.