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Ignoring the Phantom's warning about the river, Diana canoes through a waterfall, and discovers a medieval castle. Investigating on her own she is captured by the crimson guard and given to Moogoo. Moogoo attempts to convince Diana to be his wife and she scorns him. In retaliation he "turns her" into one of his dolls and shows her to the Phantom. In a rage the Phantom attacks and is captured, and also "turned" and put in the yard for the natives to see and lose hope. Escaping the Phantom finds the real Deru and with his doll proves to the natives the tiny people are fake. He leads an uprising.
Plot details indexed by the Grand Comics Database (CC BY-SA).