Carl and Donut watch the magistrate's building erupt and quickly receive notifications showing they killed Miss Quill and the acting Magistrate Featherfall. Carl gains levels, a new magistrate title, and temporary control of the settlement, but the krasue quest does not complete. Because that failure means the real source of the problem is still unresolved, Carl grows suspicious even as Donut pushes them to enter the ruined building.

The two cross to the damaged roof and descend into the surviving quarters. They find the front office destroyed, the apartment oddly bare, an old animal cage, and an already-looted chest with a broken clasp, which suggests someone had been working there before the blast. When Carl opens a heavy inner door, he discovers a hidden chamber packed with naked female corpses hanging upside down, some headless and some barely attached at the neck with purple magic swirling around them. At the center hangs a mummifying Featherfall, long dead and bound into a grotesque bone structure, revealing that the magistrate they supposedly killed had already been a corpse.

Carl realizes the room is a krasue nest and asks Mordecai how the bodies might work. The room is a muted zone, so Donut cannot cast spells, and Carl sends Mongo to test whether physical attacks can destroy the bodies. Mongo crushes one woman's head, which drops her organs and dispels the purple aura, but the attack wakes the rest of the krasue. As the floating heads detach and swarm through smoke and gore, Carl throws down a normal torch to keep them back, orders Donut to run outside the muted area so she can use Torch, and fights his way toward the exit while dragging Mongo out.

At the edge of the collapsing room, Carl uses a Fireball or Custard ticket and gets the fireball. The blast tears through the bedroom, burns Featherfall's remains, and wipes out the remaining krasue dots on the map, while Donut returns with an unusually bright Torch that finishes keeping the monsters at bay. When Carl searches the aftermath and finds no neighborhood map on Featherfall, he concludes Featherfall was not the true boss and that Miss Quill must have been the real power in the building.

One burned body then briefly switches from monster to human and reveals herself as Burgundy, the assistant Carl and Donut saw earlier. Burgundy refuses healing because restoring her body would make her a krasue again, and she explains that Miss Quill had truly been running the town while using Featherfall's corpse as a dark fetish to anchor the cursed women. Burgundy says Miss Quill served her undead husband Remex, who hides across the street above the sword guards, is trying to return fully to life, transforms trafficked women into krasue, controls glamored city elves, and has the women collect feathers for his unknown ritual; failed transformations are the alley corpses the party has been finding. As the ruined structure gives way around them, Burgundy begs to die while still mortal, and Donut grants the request with a Magic Missile.