Aud has warned the Vikings that should blood ever be shed upon Hy-Brasil, the entire island would sink beneath the waves. Erik and his crew defend Hy-Brasil against Halfdan's ship. Loki is found aboard the ship, and pretends to have sneaked aboard to sabotage it. In gratitude for Erik's having saved Hy-Brasil, King Arnulf presents him with the Horn Resounding, which is much larger than Erik had imagined. Loki steals the Horn's mouthpiece in the night, without which it cannot be sounded, and persuades Keitel to throw it in the sea. Snorri, one of Erik's men, catches them in the act, and Loki kills him. A single drop of the man's blood falls from Loki's dagger, triggering an earthquake that causes the island to sink.