The "Odin-bolt" strikes Loki, Balder, and Sif, depriving them of their godlike powers. Loki, realizing he is now no match for Thor, flees.
Elsewhere, the Wrecker robs a wealthy couple's penthouse, then eludes a police manhunt.
As Thor, Balder, and Sif hole up in Don Blake's office, Loki takes a rented room, disguising himself by wearing an overcoat and keeping his horned helmet in a hatbox. There, he summons Karnilla in an attempt to regain his powers. The Wrecker breaks in and knocks Loki out with his crowbar.
Finding Loki's helmet in the box, he tries it on. Karnilla appears and, seeing the horned helmet, delivers power to the Wrecker, thinking he is Loki, before disappearing again. The Wrecker uses his power to send Loki "back where ya came from."
At Don Blake's apartment, the Wrecker sends Balder and Sif back where they came from but decides to battle Thor.
Back in Asgard, Balder and Sif try to soften Odin's heart toward Thor but he rejects them.