The First Annual Smash City Kart Championships continued at Peach’s Castle. This second round race had eight racers, top four advance. Early in the race, Donkey Kong became enraged and punched Revan all the way into (and through) the wall of the castle. Revan recovered, met up with Shovel Knight (who had come searching for him), and discovered that Toadstool Retainers were disappearing. One panicked Toad asked them for help. Some clues indicated an ongoing disappearance, and then the two came across Wario and Waluigi stuffing some Toads into kidnapping bags. They battled the two ne’erdowells, but a Smash Ball went the other way and both Revan and Shovel Knight were trophied.
In the meanwhile, Roll finished second and Steve finished fourth to advance to the semifinals of the tournament. Afterwards, Roll, Steve, and Isabelle came looking for Revan and Shovel Knight, only to find them trophied and the only remaining Toads hiding in a nearby closet; they were able to escape because of Revan and Shovel Knight. While looking for clues to Wario and Waluigi’s whereabouts, they managed to save the big feast that the Toads were working on (and had been kidnapped in the middle of cooking) for that evening’s post-race ball.
On the roof, they found several of the hot air balloons used to watch the race chained to the castle suspiciously. These balloons had rocket engines and kidnapped Toads tied up in them. Wario and Waluigi’s insane plan to steal the castle was uncovered, and the entire party faced them head-on (after a very, very cute distraction by Isabelle). It was a tough battle, but Wario was trophied and Waluigi escaped (by falling into the lake). A chunk of the castle was torn off, breaking the track very badly, but no Toads were harmed thanks to the party prioritizing rescue.
With Peach’s track ruined, the semifinals and finals of the tournament would have to be delayed until next weekend. And Bowser proclaimed that this time, it would be at HIS castle… after all, who would dare destroy HIS track? At the afterparty, it was learned that not all Toads were accounted for; Captain Toad was still missing. In a cutscene, he was revealed to be exploring secret tunnels beneath Bowser’s Castle…