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It was raining out and Red, Clefairy, and Pikachu run to a nearby mansion to get away from the rain. As they got inside, the interior was scary and ghost-like. Pikachu and Clefairy did some scary expressions which annoyed Red. A Gastly appeared which Clefairy fought. During the battle, Gastly kept dodging Clefairy and would counter with its own techniques. Gastly got the upper hand until Clefairy brought along a statue that scared it away.
The trio go to the second floor where they meet a couple who are the parents of Blue. They continue onward until they went into a room full of blue objects. Blue told them about his blue item collection and sent out Haunter to battle Clefairy. During the battle as Clefairy couldn't see Haunter, his antics started to destroy all the objects in the room, including the blue item collection that Blue has. Seeing this made Haunter bring out its full power by evolving into Gengar. The stuff around the room were still getting destroyed and Clefairy found out about the Silph Scope that caused Gengar to be visible. He snatched it from Blue and gained the upper hand. Clefairy then wagged his finger at Gengar and Gengar fell asleep afterwards. After the battle, Blue chased Clefairy and the group out of the mansion for the destruction that happened earlier.