While being spotted by Homer, Cassandra falsely predicts that Atlantis City will sink into the sea and so becomes a celebrity. But this causes Atlantis City's owner Croesus to hire Hades to get rid of her and the Fates to prove her wrong. But while Croesus forces her to tell the truth to Homer, she has a now real vision of Atlantis City sinking.
Homer is captured by Croesus as well, but Hercules (having seen Croesus speaking to the Fates) confronts Croesus, who asks Poseidon's monster Scylla. The ensuing fight between Hercules and Scylla eventually ends up severely damaging the Tapestry of Fate, from which Atlantis City is accidentally unwoven - so fulfilling Cassandra's vision.
As the city sinks, Hades comes to retrieve Pain and Panic but refusing to save Croesus and Hercules rescues the remaining citizens. Homer hence sets his eyes on Hercules, but is kicked out of sight by Pegasus.