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When Jake changes a line in Principal Rotwood's speech, Rotwood is fired and is replaced by a much nicer principal named Sigmund Brock. Brock is seemingly nice, but is not what he seems. Brock is actually the man who got Rotwood started on his fascination with trying to expose magical creatures. At the same time, Spud hears Stacey say that she thinks sensitive guys are hot. He uses onions to make himself cry whenever Stacey is near. Jake and Rotwood team up to get Brock fired, but it fails and Rotwood finds out that Jake was the one who changed the lines on his teleprompter in the speech that got him fired. Rotwood leaves and Jake and his friends are shunned by the rest of the school for trying to get Brock, who everyone else thinks is awesome, fired. Jake and his friends try to break in again, only to find that Brock's office is laser alarmed and is swarming with magical creatures. Jake transforms and shuts off the alarm. Jake, Trixie, and Spud search the office for where Brock is keeping a vial of chemicals that can transform dragons into their true form. Spud is attacked by an over-sized magical beetle, but defeats it by somehow using his voice to make the onion smell much stronger. They are captured by Brock, who puts them in a cage and presents them before the school. He thinks that Spud is the dragon due to his extremely bad breath from eating onions, and uses his only vial of the chemicals that transform dragons. When nothing happens, the school rises up against Brock, and he is fired & Arrested, while Rotwood gets his job back. Rotwood then approaches Jake at lunch and asks to shake his hand, but has the last drops of the chemical in the vial strapped to his wrist. He transforms Jake's hand into a dragon's hand, and leaves, saying he can wait to expose him later.
- Spud breaks the fourth wall by stating that the basement scene is the part where someone in the audience yells for them not to go in the basement.