A Dark Deception
After distracting Madame Olivia with a rat, the pirates stole the pocket watch Pendragon had given her. They then sailed to Shipwreck Bay to break a fragment from the figurehead of the Burning Blade, Flameheart's flagship being rebuilt by the chroniclers Hammer and Anvil.
Following the Pirate Lord's instructions, the pirates went to Sanctuary Outpost, where Madame Olive performed a ritual and created an enchanted compass from the artefacts they had collected. The compass guided the pirates to Port Merrick, where a rat steered them into the underground tunnels, revealing a secret passage to a mysterious room.
The pirates discovered that they had been deceived by an impostor who had taken on the appearance of the Pirate Lord. Their quest allowed the impostor to discover where Pendragon's Sword of Souls was hidden.
The impostor managed to escape with the sword by transforming themselves into a rat when the real Pirate Lord appeared in a rage.
Pendragon's blade had been corrupted by Flameheart's essence, and had become the most dangerous weapon ever to be forged on the Sea of Thieves. The Pirate Lord admitted that since the compass dial was now stationary, it must have meant that the sword had already travelled a great distance, perhaps even beyond the Sea of Thieves itself.
Ramsey, still furious, left, to speak with Madame Olivia and see if there was still time to undo the enchantment.