Unless otherwise specified, episode numbers refer to the original Chinese donghua series.
Yaya says that because Susu is incapable of living up to her ideals she should just kill her so when she's reincarnated she'll have a better chance of fulfilling them. Susu cries out for Yuechu to save her and he climbs out from under the debris attacking Yaya with a strange mysterious substance leaking out of his right eye like a teardrop. Susu is relieved to see him alive and Yaya orders the other spirits around to attack Yuechu.
He makes their weapons instantly disappear using his strange attack and is about to fight Yaya, when his dad arrives draining the tear-like substance into a container and apologizes for his son's behavior. Bai's dad then 'sacrifices' Bai to Yaya.
Yaya is surprised, and recalls saying she will only believe in Bai Yuechu if she see's "that thing" appear. She demands to know what the substance coming from Yuechu's eye is and to have an onion brought so she can make Yuechu cry again.
Wang Fugui arrives on the scene to punish the wrong doing yaoguai. Qingtong recognizes Wang Fugui, saying that he is the one. She is awed by Wang's skills. Wang uses Four Symbols Mirror (四象镜) to summon Qinglong (青龙) who uses a hydropump (大潮汐) against the yaoguai. However Yaya freezes the water with her powerful ice magic.
Yaya throws a chunk of ice at Wang but Qingtong jumps in front of him to block the ice landing on him. Fugui throws Qingtong away saying he hates spirits, and then Yaya intimidates him into fetching the onion requested.
Qingtong is sad, saying that Wang does not remember. She thinks that using the Tianshu could help restore his memory. Qingtong steals the Sacred Book, using her silk threads to hitch a ride onto a passing plane to make a quick escape.
However, Bai strikes a deal with his dad, saying free him to get the tianshu in exchange for half of his candies. His dad agrees and throws him up high in the sky at the escaping Qingtong to get the Tianshu. However, Bai falls short and falls to the ground.
But before hitting ground zero, Bai Yuechu uses an onion to summon the special tear substance again, giving him flying abilities. He fires off a "Tear Blade" which pulls the space between Qingtong and Yuechu closer together and then slices the Sacred Book in half.
This is the powerful Dao magic that Yaya was looking for: Xukong zhi Lei (roughly meaning 'Tear Void').
The old man from earlier then appears again claiming he has information for Yaya.