Wendy and Jay hunt for relics in the woods and find a skull and mystic tablet. Discovering these somehow releases the ghost Joan from the clutches of the evil Demon King, a transgender demon that enslaves ghosts and forces them to collect human hearts for him before they can reincarnate. The Demon sends his posse of girl ghosts to collect Joan and eliminate the interfering mortals, but is thwarted by the timely intervention of a master Taoist priest and his two disciples.

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