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Jake remembers the time that he failed at camp to win the race when he was a kid, because he had a broken leg.
Later that night, a diary book that belonged to an evil civil war ghost whose name was Shackles Jack rises out, while a bunch of other ghosts come out such as Solitary Sam, Chain Gang Chuck, Peg Leg Pat, and two unnamed ghosts. They have their plan is to find some warm bodies that they can steal and pose them as their owns.
Spud sees Shackles Jack and his minions. The ghosts see the magic trophy-like cup that will make ghosts get new bodies if humans are captured. Shackles Jack captures Brad and his crew. Jake fights the ghosts, but Spud and Trixie can't touch ghosts.
Jake traps the ghosts. The kids from the cabin rescue Jake and the others.
Next morning, everyone was eating breakfast and Spud was naked that he returned all the lost clothes so he covered his butt with bushes.
Brad was teasing Jake. Jake framed Brad that he was not wearing clothes. Brad was wearing a towel and his dad Officer Morton arrive and shows Brad was disobeying the law in public naked that is against the law. And Brad lost the towel that he was wearing and became naked and everyone starts laughing at Brad.
Note: Humans can't touch ghosts, however dragons are able touch ghosts as if they were solid and therefore they are able to attack ghosts, but dragons won't touch ghosts if they don't have their dragon chi and the ghosts will be able to not get hit by dragons in their old human forms.