Danny wakes up at an academy run by Bakuto, who teaches him how to recharge his "chi". Danny grows suspicious, and infiltrates a restricted area where he learns from an imprisoned Gao that Bakuto is a Hand leader himself.
Danny confronts Wing, who insists that their faction of the Hand is "good" and in opposition to Gao's "bad" faction. Bakuto visits Harold and offers a partnership. Danny learns that Bakuto's Hand is conducting mass surveillance, and attempts to escape from the academy.
He is aided in this by his childhood friend Davos. Bakuto stabs Danny with an unknown object, before he and Davos fight their way to the academy gates. Danny is now unable to summon the power of the Iron Fist to open the gate, but Wing is able to open it and offers a distraction to allow the duo to escape.
Davos tells Danny that they must return to K'un-Lun. Acting on Joy's blackmail material, Harold kills a member of the board but stages it as suicide and denies his involvement to Joy. She convinces the board to reinstate the Meachums and Danny.