Previously… in Arc 2: The Assault on Hyrule/Sara's Downfall …
After reclaiming the Mushroom Kingdom all of our heroes decided to rest up and train to defeat Sara before heading off to Hyrule – Where Sara was at the time acting as the Queen. Even if this involved Sugar-High girls and funny moments like that, everybody bonded together during that time, making it harder for them – though some did know – to say that Final Goodbye.
Though not long after did Sara come and did something nobody was expecting: She went and kidnapped both Aurora and Mi'kal before going to face The Smashers, telling them that she'd kill them in three days and if only they came before then and defeated her, they would live. With them knowing that they had to race against the clock, everybody went off to go after Sara.
Deep in the basement of The Smash Mansion, it turned out the so-called God had injected a weird dark formula into those he captured and left them inside for the formula to fully activate. Though it never did surface at first, a long-forgotten bond between Mi'kal and Aurora began to surface, but was short-lived when she was taken away by Shade, though it awakened the dark formula in his body to go after him. Even though Master and Crazy hand were inside the Mansion, they were stripped from their powers, they were transformed them into a human form, though hidden underneath their cloaks. They went after them through the portal along with Robin, Panda, Ashley and Villager.
The main Smash Rescuers including Lauren, Bryce and Ana arrived in the main throne after navigating through the castle and found Sara waiting for them there. They fight was fierce, taking blow and after from each side. It was only when Sara had the upper hand and was forcing Warrior Kitty to make a difficult choice to save Mighty, Bryce somehow got free and Lauren released all of her power to stop Sara, but at a cost. Bryce knew that doing that, she would die if he struck Sara while Lauren was on her, but Lauren refused and told him to do it anyway. Without any warnings for Sara, he clearly killed her right in front of the others. Everybody recovered, but then went over to Lauren to say their final farewells and wishes for he before she vanished, returning back to Earth. All the girls were crying, but Bryce kept his tears a secret from them.
In Subspace, Shad had his fight with Mi'kal and Aurora woke up, but was at first powerless to stop them. She wanted to help save them from whatever was in their systems and it was through the power of The Demon's Eye. She would save everybody but only if she would stab herself last and allow it to feed off of her own darkness. Grabbing the sword, she allowed herself to be plunged into darkness and her actions were almost like Shade's though she had more mercy for them, but never showed it. It was when she freed Mi'kal that she knew the consequences for her actions would bring her too. After freeing Shade, she ordered him to watch over Marth and only give the others help when needed before grabbing her main sword and left the scene as a portal took the others away.
Everybody except for Aurora was transported to an open field, where they met the true enemy and the Mastermind behind Sara's return: Her older Brother Josh! By trading her soul and countless others, he gained not only an army, but unlimited power and also drained both Master and Crazy Hand. Now our heroes have the final task ahead of them, just as Shade said: to defeat Josh and stop this war once and for all.
Now… it's time for the final Arc…
Arc 3: Final Destination/The Battle of Fate: Josh!
