Zhang Xiao Jing finally catches up to the remaining Wolf Squad members and their carriages of Crouching Fire. Many in Jing An Si are doubtful that Zhang Xiao Jing will succeed but Li Bi puts his faith in him. Meanwhile, a traitor is revealed amongst their midst and Yuan Zai continues to woo Wang Yun Xiu.

With his reputation severely damaged, Xu Bin still decides to sneak out of Jing An Si. Li Bi pursues him to find out that Xu Bin is the inventor and owner of a Bamboo production making factory. Xu Bin wanted to find a way to help the empire and his grand idea was to produce more paper. Li Bi's suspicion of him recedes. In the meanwhile, the Right Chancellor also takes an interest in Xu Bin and finds that Xu Bin's funder was none other than He Fu, the adopted son of Director He. With this information, the Right Chancellor has what he needs to strike at the Crown Prince and his close ally, Director He

In the aftermath of the fire, Zhang Xiao Jing must race to save people, including the Wolf Squad member Cao Po Yan for clues. The blast was heard from all over Chang An and we come to learn that the bombs were called Crouching Fire. Li Bi interrogates Xu Bin about his relationship with Zhang Xiao Jing. Xu Bin finally admits that he chose Zhang Xiao Jing for this mission due to personal reasons.

In episode 13, Cen Sen and Xu Bin finally discover the secret of Que Le Huo Duo – ink stones made from oil will be the catalyst to burn down all of Chang An. The lowly Yuan Zai meets with Feng Da Lun but quickly discovers that the woman the Blaze Gang captured is more than meets the eye. He seizes his opportunity to climb up the ranks. In the meanwhile, Li Bi turns his suspicions to Xu Bin.

In episode 12, Zhang Xiao Jing and Cui Qi resume their hunt for Wen Ran and the remaining Wolf Squad members. Long Bo has other plans for these Wolf Squad members. We are introduced to a very peculiar man, Yuan Zai, who is determined to grasp his opportunity to climb the ranks in Chang An. Li Bi in the meanwhile believes there's a mole within Jing An Si and publicly arrests Xu Bin in an attempt to find the mole. Things are looking grim for both Li Bi and Zhang Xiao Jing

An esteemed general/eunuch Guo Li Shi arrives with a decree from the Emperor for Li Bi which on the surface is congratulatory but is actually filled with his displeasure. Zhang Xiao Jing enlists the help of a special Chinese dog to follow Wen Ran's scent while Wen Ran brings her captors to meet Long Bo. Tan Qi brings Zhang Xiao Jing's message to the Prince of Yong who somehow immediately follows Zhang Xiao Jing's orders.

General Cui Qi announces via the watchtowers that they had complete and total victory in eliminating all members of the wolf squad. Which is entirely untrue. Cao Po Yan and Ma Ge Er are both alive and have abducted Wen Ran to boot. Zhang Xiao Jing awakes and with Tan Qi's help, cleans up to start his second chase. Meanwhile, the news of victory is impactful both to the crown prince and the right chancellor.

Zhang Xiao Jing is getting beaten up by the wolf squad members and figuring out how to escape while Captain Cui Qi is treated to a stunning performance by the superstar Xu He Zi who performs her rendition of the Short Ballad.

Zhang Xiao Jing has chased the wolf squad members to Xiu Zheng Fang but unexpectedly meets the young woman, Wen Ran, who seems to know too much about the Wolf Squad. Through flashbacks and also Li Bi's investigation, Zhang Xiao Jing old connections with Wen Ran's father during the military are discovered. Meanwhile, general Cui Qi is dragging his feet to help Zhang Xiao Jing while encountering a grand parade.