Having escaped from Lorelei, Yellow eventually goes separate ways from Bill, ending up near Celadon City where Erika lectures at Celadon University. After Erika's lesson she is approached by one of the professors, who compliments her on the popularity of her classes but also notes her state of concern. Erika admits that she has been worried due to the recent disappearance of a close friend. Afterwards, Erika contacts Misty, who tells Erika that there is no new news about Red.
That night, Pika has a dream of Red's defeat, with his Pokémon strewn about unconscious and Red taking a kick to the gut from a Hitmonlee. Shocked awake, Pika decides to search for Red without Yellow, but the latter informs Pika not to act rashly. Angered, Pika attacks Yellow, and sensing the Pokémon's distress Yellow tries talking to Pika, but Pika remains angry. Just then, Erika shows up with her army of Celadon City citizens, declaring that she was informed by Professor Oak about Yellow and pointing out that while the Professor had given Yellow his blessings, Pika is noticeably less approving. Pointing out that Pika likely only followed Yellow due to Red's scent, Erika tells Yellow that she has come to place Pika under her care when an attendant informs her that someone fitting Red's description was spotted near the city. At once, Pika and Yellow run for the west side of the city, followed by Erika and her followers.
On the west side of Celedon City Red shows up, prompting Pika to happily jump into his arms. Relieved, Erika approaches Red, but everyone is stunned as Red punches Erika in the stomach and knocks her down. Yellow immediately senses something is wrong and Pika releases a powerful Electric blast, but the fake Red reveals his insulated bodysuit, which is also designed to emit a chemical scent similar to Red's. Ripping off his disguise, the impostor introduces himself as Super Nerd Miles, boasting of his own scientific genius.
The citizens of Celadon City attempt an advance, but are stopped in their tracks with Erika pinned under Miles's foot. At this, Miles releases his Marowak and has it use Bonemerang, which quickly scatters the townsfolk. As he turns to leave, Yellow shouts after him to release Pika, saying that in the absence of Red the ownership of Pika falls under him.