Both the Leage and Scourge Empire's allience and laytberate fake Clockwerk's ghost plot have been destroyed, Eagle-Beak is finally apprehended by the athourities and the Glactice Federation are now keeping the leage and scourge empire under heavy surveillance but Clockwerk's REAL ghost and Penelope are still at large seeking vengence against Kairi and the rest of their enemies. They gather Kailass' colleagues from the Glare of the Python saga and send them to attack the lougers while Penelope's robots move in to aduct Spongebob, Spyro and Kairi. However, Sly is already ahead of this, and does not intend to let Clockwerk take advantage of the lougers false sense of security.