- Joker convinces Jeremiah about having a gladiatorial combat between Killer Croc and Pinhead as a way to keep the inmates busy. Jeremiah knows that the situation could turn bad but they continue with the plan.
- Killer Croc and Pinhead fight, Pinhead dies.
- Inmates start to attack guards, they are about to torture Jeremiah Arkham when Joker uses a firehose to stun them and let the guards regain control of the situation.
- Joker kills Wax Man, bur when Jeremiah tells him to stop, Joker obeys.
- When Jeremiah and the Arkham staff realize that they are outnumbered, they step out of the gym and lock the inmates inside. Before the doors closed, Joker throws Jeremiah's diary to him.
- Jeremiah reads the diary and learns that everything that happened was planned by the Joker. The security guards decide to leave, leaving Jeremiah and David (his most reliable staff member) alone. They lock themselves in Jeremiah's office until they can devise a plan. They watch the TV news and learn about the hearings in D.C.. Jeremiah knows that the government will shut down Gotham.
- Later, a shadowy figure (“Batman”) walks into Arkham Asylum's gym and finds it empty. He walks to Solly Bean's cell and tells him to give a message to the rest of the inmates, but suddenly all the inmates appear behind him, ready to receive the message personally.
