The Shadow Master begins operating an illegal fighting ring in a secluded area of Metro City. Sickle then forces a homeless martial artist named Vortex to fight in the tournament by holding a group of homeless children hostage. Billy and Jimmy must rescue the children and help Vortex before the Shadow Master can get rid of them.

The Shadow Master discovers a powerful Dragon artifact called the Eye of the Dragon which grants its holder the power of sight. Jimmy gets hold of the artifact, and it gives him incredible powers. However, it also begins possessing him. Jimmy is forced to choose between the artifact and his brother.