The negotiations between Cardeas and Zinnerman break down as a mobile suit battle begins inside the colony, claiming the lives of Banagher's classmates. Banagher rushes back to Magallanica to help Audrey, but loses his way, and in an industrial block he discovers a white mobile suit with a single horn. Cardeas has been mortally wounded by Alberto, who infiltrated Magallanica, and he now reveals that he is Banagher's long-estranged father. Entrusting Banagher with the hope that he can change the fate of the Vist family, who have been cursed by Laplace's Box, Cardeas gives him the Unicorn Gundam, the key to the Box, and then disappears amid the flames. As Banagher's suppressed childhood memories return, he activates the Unicorn Gundam and confronts the Sleeves mobile suit Kshatriya. He pushes it out of the colony, but finds himself in peril as it counterattacks.
They busted holes into the colony,
so we escaped. Please rescue us!
!لقد أحدثوا ثقوبًا بالمستعمرة، لذا فقد هربنا. أنقذنا رجاءً
Wegen des Lecks sind wir
aus der Kolonie geflohen!
Crearon orificios en la colonia,
así que huimos.
Hicieron orificios en la colonia,
así que huimos.
On s’est sauvés 
car la colonie a été perforée.
Nella colonia ci sono delle falle,
Eles abriram buracos na colônia, 
e aí fugimos pra cá! Salva a gente!