"Um…" Olivia said as she peered into the Third District after opening the door. "Is this the right district? This part of Traverse Town looks a lot different than the First District. Has it always been like this?"

Sora quietly nodded before stepping through the doorway into what was supposedly the Third District. There were several buildings that were connected in that area, a railing decorated with colored lights, and a staircase to the right of them. There was only one building with lights on inside, and the soft sound of running water was produced from somewhere in the lower part of the district. Riku quietly walked over to the door and leaned against it.

"You're sure this is the shopkeeper's home?" Olivia suddenly became worried. "They seem like the shady type… um… what I mean is their house is in a pretty strange spot. I wonder why they aren't answering the door, maybe they're not home right now…"

"The lights are on, though," Riku said.

"Maybe they forgot to turn them off?" Olivia hovered over to the door and knocked on it quietly. "Um… Hello? We came here from the store in the First District. We were wondering if you could give us access to it! I think you might have locked it."

There was no response. The light stayed on, and everything around them was quiet.

Olivia turned around. "N-No one's answering. They might just be somewhere in the city."

"No, I'm here," a voice said from the building. The door to the house unlocked and the person inside slowly opened. Someone slowly waddled out, casting a giant shadow on everyone in front of them. They had yellow hair, wore brown goggles, a necklace, and a white shirt… but they had a strange voice. Sora looked at him with a confused expression… they looked different than normal people.

"Cid?" Sora slowly approached him. "Cid… is that you?"

"You know this guy?" Olivia asked.

"Yeah… I met him when I first arrived here in the First District of Traverse Town. He was running the Accessory Shop over there."

"He… looks strange," Olivia said, observing him closely. "Almost like he's…" Olivia suddenly froze. Was this person made out of... Olivia shook her head.

"What's wrong, Olivia?" Kairi asked. "You just went stiff there."

"It… It's nothing. I was just having some bad memories, that's all."

Kairi looked at her with a serious expression. "Olivia, we're all here to support each other. No matter what, we're a family. We all care for each other and we always will. If there's anything bothering you, just know that you can trust us. We'll all be here to support you."

Olivia relaxed a bit. "Th-Thanks, Kairi… I'm glad you and the others found me. Although you said you wanted to eat me… that part spooked me a bit. But now, it seems like we've made up, so… I guess I should tell you what's on my mind."

Kairi nodded. "Go on."

Taking a deep breath, Olivia recalled what had traumatized her. "I… You may not believe what I'm about to say, but I think the shopkeeper has been turned into origami."

"Origami?" Xion asked. "Like… you?"

"No… I mean, yeah, origami, but…" She sighed. "It's hard to explain. The origami paper this man has been folded from is different from the type of paper used when my creator folded me. My guess is that my brother has found his way into Traverse Town, and now he's wreaking havoc here… and in my homeworld."

"Then he must be behind the disappearance of your world!" Sora yelled, pulling out his Keyblade. "Alright, Keyblade Warriors, let's get Olivia's brother!"

"Oh, I wouldn't be too sure about that." A sinister voice came from above them. A pointed figure slowly descended upon them, staring at Cid. "Hello again, sister."

"B-Brother?!" Olivia was horrified. "Wh-What are you doing here?"

"Let me make it simple." He flipped his hair off of his left eye. "I'm here to put a stop to your plans. You may have thwarted me in the past, dear sister, but now… You are about to witness the true power of origami!"

"Leave these people alone!" Olivia screamed, beginning to cry. "They've done nothing to you! What could you possibly have against them?!"

Olly chuckled. "Nothing personal. Except… well, everything. I have a confession to make. I made a deal with some friends I met earlier. These friends… they want Traverse Town and other worlds in this universe destroyed! And I shall grant their wish. Go forth, my Folded Soldiers! Eliminate Sora and his band of Keyblade-wielding friends! But, do watch out for my sister. I have a feeling she will be of good use in the future." With those words, a group of origami Goombas and Shy Guys appeared.

"Whoa!" Riku jumped back. "What are those things?!"

Olly sneered. "They are my army, my origami army. Now then, I've been sent to wipe any remaining Keyblade wielders from existence. Once my Folded Soldiers have dealt with you, I will begin the search for my next target: the king. I will make my leave now."

"WAIT!" Aqua yelled. "What happened to Ventus and Terra?!"

"I'm not sure what you're talking about." Olly shrugged. "I haven't heard of anyone named that before."

"Liar! You obviously know something about them! I received a letter and a drawing from one of them! The drawing and the description of you match perfectly! He's told me all about your plans! You can't hide anymore!"

"WHAT?!" Olly raged. "That bastard…!" He took a deep breath and smirked at Aqua, who was glaring. "Thank you for telling me about your friends, my dear. I will take care of them now. Good day." With that, he vanished, leaving behind a swarm of Folded Soldiers.

Aqua suddenly gasped. "Wh-What have I done… Th-They're going to get Ventus and Terra, and… and… I… I don't even want to think about what will happen to them!"

Sora put his hand on her shoulder. "Don't worry, Aqua. We won't let anything happen to them. Besides, we're all a great team. We'll put a stop to Olivia's brother's plan… Oh, that reminds me." Sora turned to Olivia. "What was your brother's name again?"

"His name is Olly." Olivia looked at the squadron of Folded Soldiers in front of her. "He has the power to create origami soldiers which he calls Folded Soldiers. He creates them by forcing and stapling normal paper creatures. This effectively brainwashes them, and they always do his bidding."

Roxas pointed at the mask of one of the Shy Guys. "Hey, what's that symbol on its face?"

"What symbol?" Namine asked. She looked closely at the mask's brand and gasped. "Th-That… That's the brand of the Heartless!"

"The brand of the Heartless?" Olivia asked. "What does that mean? I mean, the Folded Soldiers were already pretty much heartless to begin with, but this really doesn't sound good! It looks like the only way we're going to be able to advance further through the District is by fighting these guys!"

Sora charged and lunged at one of the Goombas. Thrusting his Keyblade at the Goomba's face, Sora heard a loud clang and began to feel dizzy. Several sparks were created from the collision, but the Goomba remained unfazed by the attack. Sora slowly backed away from it.

"No… they're… immune to the Keyblade?" Sora looked at his weapon nervously. "How can this be?"

Kairi grinned at Sora. "Ha… you're just rusty with your Keyblade. Let's see them survive against magic!" She pointed the tip of her blade at the Goomba and yelled, "Firaga!"

A beam of fire was launched from the Keyblade into the squad of Goombas. The flame hit the wall behind them and burst, spreading flames everywhere. The wall was smeared with black burn marks and smoke filled the air, shrouding the Folded Soldiers in darkness. When the smoke finally cleared, they noticed the Folded Soldiers were relatively clean and unharmed by the attack. Sora lunged at them once again and managed to land a blow on one of the Shy Guys. It was hit backward over the wall and fell to the concrete below. The remaining Folded Soldiers decided they would charge at Sora, but Riku and Kairi came to his aid and managed to defeat them. When the Folded Soldiers were defeated, they burst into…

"What is this stuff?" Namine said, picking it up off the ground.

"When Folded Soldiers are defeated, they burst into confetti," Olivia explained. "Confetti is very important for filling in holes made by my brother's minions."

Kairi examined her Keyblade. "So… it seems like we're supposed to use magic to weaken the Folded Soldiers first, and then we can strike them with our weapons… These Heartless are strange…"

"Actually," Olivia started, "those Folded Soldiers have a weakness we can exploit. They have these seals with my brother's face on them somewhere… I'm pretty sure it's on their back. If we manage to destroy that seal, we can disarm them, and they can be attacked with melee weapons." She turned to Kairi. "When you used your flame attack, it burst when it hit the wall behind them, destroying their seals. This weakened them enough to the point where your Keyblades were able to destroy them."

"Wait, what do you mean by… holes made by the origami?" Xion asked.

"There are these paper mache soldiers that leave giant holes in the Paper World when they attack. These creatures are known as Paper Macho soldiers, and they can deal a lot of damage to you and your surroundings if you are not careful."

Aqua looked at a small window across the District and noticed a small black hole in the center of it. "You mean like that?"

Olivia suddenly jumped up. "Yes! Just like that one! Wait… if there are holes in this world…" She fiddled with her hands nervously. "Then that means… my brother has been ordering origami to destroy other worlds! Those holes aren't bottomless… but it will be very painful if you fall in one of them. At least, I think it well. I can hover, so it doesn't really apply to me."

"How do we fill in the holes?" Sora asked.

"The confetti you collected." Olivia scooped up a pile of confetti and shoved it into Sora's hands.

"Where am I supposed to store this? I don't have any room!" Sora complained.

"Right, I was going to give you this," Olivia said, tossing an empty leather bag on the floor. "This bag will allow you to store confetti. The confetti can be applied to all kinds of surfaces—walls, floors, trees—and it can easily be replenished. All you need to do is go up to a paper shrub or tree and start whacking away… Well, you'll need a powerful tool to do enough damage to get confetti. Too bad we don't have a hammer or something."

Axel suddenly groaned in pain and tripped over something. There was a folded white creature poking at him… A Moogle.

"We can't stay here in Traverse Town, guys!" Roxas shouted. "There are too many Folded Soldiers, and they've been recruited by the wielders of darkness!"

"Right," Aqua said. "We'll just take the Gummi Ship, and then we can travel to another world."

"Actually, before we leave…" Namine walked down the narrow ramp to the plaza below them. "I think we should check out the Second District… just to be safe."

"I suppose it wouldn't hurt to explore the town a little more," Sora said. "Let's follow Namine. Hopefully we don't run into any more of those origami freaks." He noticed Olivia glaring at him slightly. "Er… I mean, those… Folded Soldier freaks. Sorry, Olivia… bad wording."

Namine walked over to the door leading to the Second District but quickly realized something. The door was jammed, or stuck. There seemed to be something blocking it on the other side.

"I can't get it open," Namine said. "Something huge is blocking it."

"Then I guess we have no choice," Roxas said.

"Please… you aren't going to do what I think you're going to do, right?" Xion asked.

"What? You'd rather stay here and get mauled by the Heartless? I'm getting us out of here." He cast Firaga at the wooden door, destroying it in seconds. Flaming pieces of wood were sent everywhere, revealing a massive dark tube leading up into the sky.

Olivia cautiously moved closer to it. "This… Is this one of my brother's streamers? It looks… strange, almost like it's made of darkness…"

"Streamers?" Sora thought. He tapped his Keyblade against the dark substance. His Keyblade was pushed back by some invisible force, like two magnets of the same charge repelling each other. An orangish light flashed a few centimeters away from the streamer… it was shielded.

"Wait! Look!" Axel said, pointing to a small fountain with a mural at the other end of the District. "The streamer leads into the fountain! Now… if only we could find some way to destroy the streamer…"

"Wasn't that where…?" Sora gasped. "...Where the Keyhole to this world was?"

Kairi climbed over the streamer that was blocking the path to the fountain and pointed her Keyblade at the mural sitting above it. She felt the Keyblade in her hand rumbling violently, but nothing else happened.

"There's definitely a Keyhole around here somewhere," Kairi mused. "I can feel its power… the Keyblade is responding to it."

"Hmph. So, you found the Keyhole to Traverse Town. Congratulations."

"Olly!" Riku growled. "What are you doing here again?!"

"I was just checking on your progress." Olly hovered over to the mural near Kairi. "I see you've found where the Keyhole is located. However, with no knowledge of how to activate it, I'm afraid your journey here in Traverse Town has reached its end."

Olivia quickly moved over to Olly. "B-Brother, how could you?! I used to support you, but now… All these things you're doing… they're so mean! I couldn't possibly support anyone like that!"

"So be it," Olly growled. "I don't need your help, sister. I have thousands of origami soldiers at my disposal. They will all do my bidding, and I will declare myself the TRUE KING OF AN ORIGAMI KINGDOM!"

Aqua walked over to Olly and tried jabbing at him with her Keyblade. "What have you done with Terra and Ventus?! Where are they?!"

Olly sneered. "Oh… you shouldn't be worried about your friends. I can assure you, they didn't feel anything. They're perfectly safe, and I know exactly where I left them. Oh, and speaking of origami… I'll be leaving this here." He summoned a few Paper Macho Soldiers. "Goodbye for now." With that, he disappeared into the dark alleyway, leaving three giant paper Goombas.

"Th-These are the Paper Macho Soldiers I warned you about!" Olivia warned. "Brace for impact, everybody! And remember my lesson: aim for the seal, destroy it, then destroy the enemy!"

"Here they come!" Xion shouted, watching as the towering Goombas prepared to charge at them. "Let's get them, Keyblade Warriors!"