Bloom, Tecna, Timmy and Brandon make another attempt to enter the Crypt of the Magic Archive in CloudTower to learn more about Bloom's origins. After many dangers, they finally enter the crypt, but to everyone's shock, they discover that Bloom is a renegade witch, not a fairy! Full of shame, Bloom runs away, unaware that it is actually a trap set by Icy. Taking advantage of Bloom's low spirits, Icy, Darcy and Stormy try to lure her back to them. 
 

The Trix want to get hold of the Dragon Flame, so they summon a shadow monster that can create terrifying nightmares during sleep. The monster approaches the fairies' bedroom and takes all their powers, becoming extremely powerful. But the fairies discover the monster and its intentions and Faragonda comes to help. Defeated once again, the witches return to CloudTower, where Headmistress Griffin punishes them with expulsion from the college.