Linghu Chong is having a fight with Yu Canghai on the rooftop but is soon defeated by him. Lin Pingzhi comes along and wants to pit his skills against Yu, so as to take revenge for his family. It is at this point that Yu realizes that he is actually the Young Master of Fuwei Escort Agency. Linghu Chong feels that Lin Pingzhi is a man with backbone.
As expected, with his mediocre skills at present, Lin Pingzhi is no match for Yu Canghai and at the crucial moment, Mu Gaofeng appears. He also has desires on the Pi Xie Swordplay Manual. An exciting and long sparring then takes place between Mu Gaofeng and Yu Canghai. After being slightly injured by Mu Gaofeng on the arm, Yu Canghai beats a hasty retreat.
Mu Gaofeng then tortures Lin Pingzhi, forcing him to acknowledge him as 'Grandpa', but Lin Pingzhi refuses to give in. He wants Mu Gaofeng to save his parents first. Mu does not agree to it. Just as he is about to hit Lin Pingzhi again, the weapon he is holding is suddenly thrown off by something. From afar, a dignified looking middle aged guy, with a fan in hand is seen. It is none other than Yue Buqun, the leader of Hua Shan Sect. They have a conversation initially and later, a fight. Mu Gaofeng says, "Never expect such a reputable sect like Hua Shan also has designs on Pi Xie Swordplay Manual." With that, he left.
Lin Pingzhi then begs Yue Buqun to take him in as disciple but is declined by him. Yue Lingshan and fellow Hua Shan members who just arrive, also plead with him to take him in. Yue Buqun relents a bit but says the main priority now is to help him find his parents first. Other things can wait.
At the retiring ceremony in Heng Shan, all the sects have arrived except for Song Shan Sect, which is the head. Just as Liu Zhengfeng is about to put his hands in the basin of water (to signify his retirement out of the pugislistic world ), he is stopped by Song Shan member, who bring in the token flag. Hundreds of Song Shan members have been deployed all around. It is a rule that members of the Five Sects have to obey the instructions of whoever holding the token flag as seeing the flag is like seeing the leader. They accuse him of collaborating with the evil sect. But Liu Zhengfeng is determined not to let anything get in his way. The Song Shan members then take his family members as hostage, using them to threaten him to kill Qu Yang. Nonetheless Liu Zhengfeng who places great importance on his friendship with Qu Yang, refuses to agree to it. Once again, just as he is about to put his hands in the basin, blood splatters over his face and into the basin. His whole family has been killed. All are tremendously shocked, especially Liu Zhengfeng. Knowing that he can never escape, he attempts to kill himself and at this moment, Linghu Chong dashes out and prevents him from doing so. He tries to dissuade Liu Zhengfeng, saying he has yet to listen to the No. 1 music composed by him and Qu Yang. Liu Zhengfeng urges him to leave.
They are soon surrounded by Song Shan members. Suddenly, Qu Yang appears and with Liu Zhengfeng, they fight hand in hand with all the Song Shan members ferociously. Liu Zhengfeng pushes Linghu Chong away for he does not want him to get involved in this dispute.
Back in the room, Song Shan members take Linghu Chong away after Yue Buqun agrees to it. Linghu Chong is then locked up in a hut. In the middle of the night, Yi Ling followed by Yue Lingshan, come secretly to the hut, to accompany him.