Afterwards, you’ll get a Glossary entry on the Keyblade War and Kingdom Hearts, as well as one on the X-blade. Suddenly, Sora awakens in Traverse Town alone. Bewildered, he decided to just look around.
You also learn about drops - this is how you switch manually between characters to progress. Just pause to do it. Drops also occur after set periods of time - at the end of that period, there is a brief Bonus Time that boosts the number of Droplets found before you switch.
Begin by going to the eastern side of the area and you’ll find a chest where you found the Confetti Candy as Riku; this time, you’ll get some Block-it Chocolate .
Afterwards, go to the southwestern corner of the area. Near the rubble, your Spirits will lead you to the electrical thing - smack it to unlock the big door back into the First District. Use the door.
Here in the First District, go to the mailbox and examine it, then examine the thing that was under it. Opt to go and you’ll arrive in the Post Office.
Here, go along the path and you’ll reach a big open room. Fight some enemies as you look around. Near the big, red northwestern structure is a chest with a Potion inside.
Then go along the path provided by the nearby conveyor belt and up the southwestern stairs. You’ll soon come to blue rail; jump over to the other side and open the chest for an Ice Dream Cone .
Then ride the blue rail, then the yellow rail. Ride the latter to the end and go down below to a ledge with a chest; open it for a Troubling Fantasy .
Ride back along the blue and yellow rails, then, when the yellow runs parallel to the green, jump onto the latter. Ride along towards the north, then jump and go backwards. When you hit the northeastern ledge, go to the chest there to find a chest with a Paint Gun (Red x10) .
Go back to the bottom and retrack. When you ride the yellow rail, get onto the ledge behind the signs. Defeat the enemies there, then use the Reality Shift Slingshot to smash the big box into the smaller ones near the wall, revealing a chest, which contains a Vibrant Fantasy .
Continue back along to the green rail. As you ride back west from the northeast, jump into the air and boost along from the top of the incline to the big chest, which contains a Spark . Then ride normally along the green rail west and north to the Save Point. Use it and go north to the next area.
Here in Fountain Plaza, when you find some crates stacked along the western wall, use the Slingshot Reality Shift with a barrel to knock the crates down, revealing a chest with an Intrepid Figment .
Then, as the path reaches the stony path, go into the eastern side alley and open the chest for a Balloon . Go north and before going east, use Flowmotion to reach the northeast rooftop for a chest containing a Rampant Fantasy .
Continue into the stony area. Climb up the western ledges and grab the Ice Dream Cone from the chest. Grind around in the area for a bit if you want, then use the exit north of the fountain to reach the Fourth District.
Use one of the nearby wires from the rooftop to the north to ride to a big chest; open it for a Balloon . Ride northwest and open the chest for a good ol’ Hi-Potion .
Jump, not ride, back towards the big building and press Y in mid-air to reach a chest; open it for an Ice Dream Cone . Head to the lit-up area to the south and open a chest for a Potion .
Leave this area to the southeast and, after a fight, open up another Potion chest. Head north to find a larger area with a scene. Sora ends up meeting the amnesiac Rhyme and a Moogle in this area.
After the scene, you’ll unlock the Flick Rush minigame, which is a Spirit-on-Spirit fight. You’ll be able to win medals, which can be traded for rare and valuable items at the Medal Shop.
Open up the nearby chest to the east for some Block-it Chocolate , then use the nearby Save Point. Go southwest and look for a door near some enemies, then go on through to the next area.
You’ll watch a scene here. We finally meet up with Neku, who is surprised at Sora’s remaining trust in him - after all, the deal with the black-hooded man was to give Sora so Neku and his partner could go home.
Sora understands, so all’s well. Rhyme suddenly disappears and the black-hooded man appears, attacks Neku, and summons a large Nightmare.
Effective : Poison
After the battle, a translucent and unresponsive Riku shows up with Shiki, to Sora’s bewilderment. Joshua comes along from Riku’s side of the town, and Neku seems pleased to find his friend again. Rhyme also comes through with Joshua.
It becomes apparent that Joshua has Rhyme’s dreams, so he can use Portals. Joshua also mentions how this town only appears when someone needs shelter, and how it is made of his dreams - he knows Sora and Riku because he dreamed them into the town. Basically, he plays God in Traverse Town.
Sora learns that Riku in an alternate Traverse Town and wants to go there using Joshua’s “Portal thing”, but can’t - only the one with Rhyme’s dreams can. And why is the town split into two? Only the black-hooded man would know. And he has appeared before Riku and fizzed out. Hmm…