King Olly transforms into a giant
King Olly transforms into a giant Origami version of himself, which Olivia counters by transforming Bowser into a giant Origami version of himself.
Starting from this phase, 1-Up Mushrooms become disabled and are unable to revive Mario when his HP reaches zero. Any extra HP from Heart Plus accessories are carried over.
The gameplay for this phase is somewhat similar to gameplay in the overworld. Mario travels along the outer ring of the battlefield, lined with Magic Circles.
As King Olly is stronger than Bowser and will eventually overpower him, Mario must stand on a Magic Circle behind Bowser, activate the 1,000-Fold Arms, and repeatedly slam the ground, providing an necessary extra boost to Bowser. If he stands behind King Olly and boosts him, the battle will shift further in his favor.
King Olly will eventually fire shurikens at Mario who must avoid or jump over them as he makes his way to Bowser.
After the battle has shifted enough in Bowser’s favor, King Olly will summon a Folded Soldier Thwomp, and Mario must keep slamming on the ground enough times to allow Bowser to push Olly over the edge of the battlefield before the Thwomp shakes and slams the ground. Mario must get out of the way when it shakes, or else he will be crushed and get a Game Over. If he does get out of the way, the shockwave from the Thwomp’s impact will bounce the two giants back to the center.
Should Bowser become about to be pushed over the edge, a POW Block will appear; Mario must hit it in 12 seconds to bounce Olly and Bowser to the center, or Olly will push Mario, Olivia, and Bowser over the edge, resulting in a game over.
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