After Jay freed his fellow Ninja from Nadakhan's Sword of Souls, they went off to the wedding ceremony at Yang's Haunted Temple (which was lifted into the sky earlier on) to poison Nadakhan and save Nya. Wu, Misako and various other allies went back to Ninjago to commence an evacuation, knowing that if Nadakhan is struck by a Tiger Widow's venom, he will lose his powers and New Djinjago will fall apart onto Ninjago far below.
The Ninja fly and crash Misfortune's Keep through Yang's Temple, destroying both the temple and the airship. Aided by Flintlocke and Dogshank, the Ninja weaken Nadakhan with the venom - which causes New Djinjago to start crumbling apart, destroying much of the city below along with the Ninjas' ship. However, Jay realizes Nya was hit by the venom as well, and she dies. As Nadakhan tries to strike him down with his sword, Jay wishes none of the events since Clouse found the Teapot of Tyrahn and freed Nadakhan had transpired. Weak and unable to twist his words, Nadakhan granted Jay's final wish, erasing recent events.
With the Cursed Realm destroyed, Djinjago collapsed and the Sword of Souls was lost with it, while the Teapot of Tyrahn was buried under scrapmetal on a barge in Stiix, and consequently Clouse never found it.