Blaming the GROTESQUES for interfering her relation with CHING, YUNG draws them to the cave where the GROTESQUES are attacked by MUI CHIU FUNG. Disappointed at YUNG's narrow-mindedness, CHING assists the GROTESQUES. YUNG then convinces MUI to stop fighting for fear that CHING will be injured. CHE sneaks into the Prince’s house and rebukes PAO for her heartlessness. The innocent PAO thus knows that HONG has replaced her letter so she flees with CHE to meet YEUNG. Discovered by the guards, PAO is forced to stay behind. On her way back, CHE meets HONG who lies that he pretends to yield to the KAM PRINCE while finding chances to kill him. Taken in by HONG, CHE agrees to hide PAO's situation from YEUNG. With CHAN's death still in mind, MUI attacks CHING on seeing the dagger he holds that killed CHAN.