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Jack Russell in his lupine form (but able to think and speak), his sister Lissa and their friends Topaz and Elaine Marston stand in the entryway of the haunted mansion called Marcosa House where they'd hoped to find some arcane cure for their critically injured friend Buck Cowan. Before them, approaching the house is a squad of zombie-like police officers. Behind them, the man they thought was a miraculouly recovered Buck has just revealed himself to be the evil spirit of Belaric Marcosa, a 19th Century mystic. The undead officers enter but quickly fall to Jack's claws, while Marcosa transforms the women into demonic hellions who are compelled to tear into each other. Jack tries unsuccessfully to attack Marcosa's insubstantial form.
Then, materializing in the foyer, is a cage constructed of tentacles made of the substance of Marcosa's corrupted soul. Within the cage are the spirits of Marcosa's victims who have sworn to aid Jack and his friends. Jack tears at the gnarled limbs freeing the lost souls. Three of them enter the bodies of Lissa, Topaz and Elaine, reverting them to normal. The rest, led by Gideon Blaine, attack Marcosa, but the assault has little effect. The Werewolf again tries to accost the occultist, but he keeps Jack at bay with magic blasts. Jack lunges at him only to be caught by Marcosa's taloned wooden leg which has become animated. Marcosa then creates simulacra of Dr. Glitternight, Moon Knight and the Hangman to overwhelm the Werewolf. Jack manouvers to throw his false foes into each other and they vanish, allowing him to focus his savagery toward Marcosa. As the occultist cowers in fear, the Werewolf slahses the evil spirit until his hold on the mansion and all within dissipates.
The spirits of Marcosa's victims are freed, and Gideon Blaine fulfills their end of the bargain by sacrificing himself to allow the real Buck Cowan to recover. In the hospital, Buck emerges fully from his coma.
In his final act at Marcosa House, Jack takes a sledgehammer to Marcosa's remains, ending his threat for good.
Weeks later, as the next full moon rises, Jack sends his farewells to friends and family, intending to lose himself in the wilderness.