Teddy sets out to return the scuba equipment to its rightful owner, and is attacked by Dredge, who wants him for dinner. The monster pulls the helmet off of Teddy's suit and traps him in an underwater cave. Teddy is kept alive by the Fourth Crystal, which produces air for him to breathe. Dredge is driven off by a stranger, who is revealed to be the Hermit of Leekee Lake -- and just happens to be an Illiop! The Hermit shows Teddy a wealth of technology abandoned on the island in the middle of Leekee Lake. The Hermit reveals that he can't remember his name or how he came to be a hermit. He then takes Teddy to an undersea boat, which Teddy activates with one of the Crystals.