The peaceful Mexican town of San Simon and a trio of Daoist martial arts pupils are attacked by a mutated initiate from an occult crime organization.

Chiu's students are left reeling in the wake of their loss. El Balde summons his fellow jefes and transforms them into flesh-eating monsters.

After uncovering the truth about their peaceful town, Isabela and Jesus are arrested while Silencio becomes a fugitive. El Balde comes to San Simon.

El Balde terrorizes the town of San Simon while Chiu's students meet Lo, their former master's brother. Brister and Garcia try to rescue Garabina.