In the local park, Anima comes across a young Asian pick-pocket called “Pockets.” She brings Pockets back to the rest of her new friends Liv, Alison, and Judy. Meanwhile, Slam Shiner signs up for some dream research at the New Dawn Institute, run in part by Dr. Maxilla Yale, who is also Anima’s mother’s boss at the Tellus Institute. Unfortunately, another person interested in this dream research is Dr. Jonathan Crane, aka the Scarecrow. The Scarecrow believes that Yale has tapped into pure fear through the nightmare realm. The Scarecrow has recently become the head of the New Dawn Institute, and he is using the patients as guinea pigs. Anima and her gang try to free Slam Shiner, and Anima ends up captured by the Scarecrow.