After Red declines the position of the Viridian Gym Leader, Blue walks out into the stadium. He examines Red's wrists, while Red trembles, obviously struggling. Blue reveals that he knew something was up, especially since Red pretended to ride his bike back on Cerise Island. He also heard that he declined the position of the Viridian Gym Leader, which Red had always wanted.
Suddenly, the ground starts to rumble, presumably because of an earthquake. Red and Blue take off, with Yellow in pursuit of Red, in order to stop him from hurting himself after the battle. Red and Blue find the source of the noise, which are a few wild Pokémon. Blue tells Red to guard the entrance while he battles them. After a quick fight, Blue manages to capture all the Pokémon, thus ending the earthquake. It's then that the chairman of the Pokémon Association finds out that Blue is Professor Oak's grandson, and was the semi-finalist in the previous Pokémon League. As he chases after him, Blue stops at the Pokémon Association van which is playing Pokémon League music. Blue yells at it and reveals that Pokémon are attracted to that music, and that everyone should know that very well. Blue tells the chairman that he hopes, for the safety of the association, he finds a suitable replacement for Red. Red and Blue then trade Gyara and Charizard and Blue tells Red to "ask Daisy Oak for the details.". The chairman then says to his assistants that he had found a replacement for Red, someone who will not have to go through the tests.
Later, Red is outside his house when Yellow and Daisy approach him, asking him if he really is leaving already. Red responds, saying that it's best that he leaves early in order to cure his hands. This surprises Yellow, and Daisy confirms that they're quite confident that his hands can be cured. There is a secret hot spring, where Sabrina went to cure herself before. However, there are many wild Pokémon there, and Red will need a powerful Pokémon to help him, which is why Blue gave Red his Charizard. Red then sends out Charizard and hops on its back. But before he leaves, Red decides to leave Pika with Yellow and Chuchu, because he doesn't want it to feel responsible for his injuries. Red then takes off for the hot spring.
Yellow explains to Pika that she, Chuchu, and her uncle will be heading to Johto, and invites Pika to join them. Pika agrees to go with them, and they head off for Johto together.