Chu Mu is not convinced and attacks Cheri Hsi ang in sudden when he is on his way to visit Hsiao-hsuan. Hsiao-hsuan is involved and is killed by Chu Flu. Chen Hsiang rebukes Chu who then feels ashamed and kills himself. Yi Cheri misunderstands that Chen Hsiang kills Hsiao-hsuan and uses Bloody Sword to challenge hire. Chen defeats Yi with his hammers and runs away. Annie dreams of taking Hsiao-hsuan place to please Chen Hsiang but he upsets her by making himself clear that he only loves Hsiao-hsuan. The foreigners force Ji-shan to yield Cheri Hsiang. Ji-shan invites Chen Hsiang and Annie in name of Lin Tsehsu to discuss how to tackle the enemy. Chen Hsiang falls into the trap and is threatened by Shao-yang with his gun. Annie risks her life to protect Chen Hsiang and is shot to death.