Waldo the Magnificent arrives at the store but gets trapped in his own hat after his rabbit stole his wand and bewitched his hat, and anyone who touches it falls in. Jeff has already fallen in the hat but TXL warns the others not to touch the hat. Now, Jodie, Muffy and Sam search the store until they find the rabbit, which turns into a kangaroo and old shoe, and manage to get Waldo's wand back and break the spell.