Yu - Gi - Oh ! - Episode 016 " The Scars of Defeat " , known as " Clash ! Blue - Eyes VS Red - Eyes " in the Japanese version , is the sixteenth episode of the " Yu - Gi - Oh ! " second series anime . It first aired in Japan on August 8 , 2000 and in the United States on February 9 , 2002 . Summary . The episode starts with Maximillion Pegasus in his executive office talking to The Big Five about their deal to take over KaibaCorp . Seto Kaiba , meanwhile , is flying to Duelist Kingdom in his helicopter to save Mokuba . Yugi and Bakura notice that Bakura ' s Millennium Ring can point to the direction of other Millennium Item s and that it has been honing in on Pegasus ' s Millennium Eye . Bakura explains that the same thing happened the day he was transferred into their class . His Millennium Ring was pointing to Yugi ' s Millennium Puzzle while he and Joey were Duel ing . ( The flashback shows Yugi has " Celtic Guardian " and " Beaver Warrior " out on his field while Joey has " Axe Raider " on his field . Joey then Summon s " Battle Warrior " . ) Everyone is deep asleep , except for Yugi , who is thinking about what lies ahead of him . Just then , Kaiba ' s helicopter arrives and wakes everyone up . Kaiba steps off and Yugi gives him back his Deck . He goes to leave , but Yugi asks to join him since they are both headed towards Pegasus Castle . Words are exchanged between them that make Joey very angry about Kaiba ' s attitude . He grabs Kaiba and challenges him , but Kaiba knocks Joey to the ground . When Joey gets up , the two insult each other to the point where they face off in a Duel using Kaiba ' s new Duel Disk system . Joey is repeatedly pounded by " Rabid Horseman " until he Summon s " Red - Eyes Black Dragon " to destroy it . However , Kaiba summons " Blue - Eyes White Dragon " , destroying " Red - Eyes Black Dragon " and winning the Duel . He then explains to the group about Pegasus ' mysterious powers . Sometime ago at the Intercontinental Championship in New York City , Seto Kaiba was one of Pegasus ' guests of honor . In the final round , Pegasus was dueling a man named Bandit Keith . Pegasus just played with Keith , then wrote something on a piece of paper and called a kid from the audience . Keith protested that asking for help is illegal . However , Pegasus says he doesn ' t need help . A child could beat him and he will prove it . Although the kid told him he only started to learn how to play last week Pegasus assures him , to follow the instructions and he ' ll win . Keith Summons " Garnecia Elefantis " . The kid follows the instructions and Summons " Flying Elephant " in Attack Position , which for some unknown reason , defeats Keith . Kaiba is clearly surprised by this . Yugi says something like this happened to him when he first faced Pegasus . Yugi and Kaiba may not agree on most things , but they both know that Pegasus must be stopped . Kaiba leaves the group and heads for the Pegasus ' castle , unaware that Pegasus is watching him with his Millennium Eye . Featured Duels . Maximillion Pegasus vs . Bandit Keith ( flashback ) . Most of the Duel is skipped . Pegasus then calls a kid named Sam to Duel in his place and gives him instructions to win . Keith ' s turn Keith draws " Garnecia Elefantis " . At this point , Pegasus has Sam Duel in his place . Keith then Normal Summon s " Garnecia Elefantis " ( 2400 / 2000 ) in Attack Position . Sam ' s turn Sam Normal Summons " Flying Elephant " ( 1850 / 1300 ) in Attack Position . Sam wins . How the two monsters interacted and caused Keith to lose is not specified . Seto Kaiba vs . Joey Wheeler . Turn 1 : Kaiba Kaiba Normal Summons " Battle Ox " ( 1700 / 1000 ) in Attack Position . Turn 2 : Joey Joey Normal Summons " Armored Lizard " ( 1500 / 1200 ) in Attack Position . Turn 3 : Kaiba " Battle Ox " attack s and destroy s " Armored Lizard " ( Joey : 2000 → 1800 LP ) . Turn 4 : Joey Joey draws " Flame Swordsman " and subsequently Normal Summons it ( 1800 / 1600 ) in Attack Position . " Flame Swordsman " attacks " Battle Ox " , but since " Battle Ox " has resistance to Fire , " Flame Swordsman " loses 300 ATK ( " Flame Swordsman " : 1800 → 1500 / 1600 ) . " Battle Ox " destroys " Flame Swordsman " ( Joey : 1800 → 1600 LP ) . Turn 5 : Kaiba Kaiba activate s " Polymerization " to fuse " Battle Ox " with " Mystic Horseman " in order to Fusion Summon " Rabid Horseman " ( 2000 / 1700 ) in Attack Position . Turn 6 : Joey Joey Normal Summons " Swamp Battleguard " ( 1800 / 1500 ) in Attack Position . Turn 7 : Kaiba " Rabid Horseman " attacks and destroys " Swamp Battleguard " ( Joey : 1600 → 1400 LP ) . Turn 8 : Joey Joey draws " Axe Raider " ( 1700 / 1150 ) in Attack Position . Turn 9 : Kaiba " Rabid Horseman " attacks and destroys " Axe Raider " ( Joey : 1400 → 1100 LP ) . Turn 10 : Joey Joey Normal Summons " Battle Steer " ( 1800 / 1300 ) in Attack Position . Turn 11 : Kaiba " Rabid Horseman " attacks and destroys " Battle Steer " ( Joey : 1100 → 900 LP ) . Turn 12 : Joey Joey Normal Summons " Garoozis " ( 1800 / 1500 ) in Attack Position . Turn 13 : Kaiba " Rabid Horseman " attacks and destroys " Garoozis " ( Joey : 900 → 700 LP ) . Turn 14 : Joey Joey Normal Summons " Rock Ogre Grotto # 1 " ( 800 / 1200 ) in Defense Position . Turn 15 : Kaiba " Rabid Horseman " attacks and destroys " Rock Ogre Grotto # 1 " . Turn 16 : Joey Joey draws " Rude Kaiser " and subsequently Normal Summons it ( 1800 / 1600 ) in Attack Position . Turn 17 : Kaiba " Rabid Horseman " attacks and destroys " Rude Kaiser " ( Joey : 700 → 500 LP ) . Turn 18 : Joey Joey draws " Red - Eyes Black Dragon " and subsequently Normal Summons it ( 2400 / 2000 ) in Attack Position . " Red - Eyes Black Dragon " attacks and destroys " Rabid Horseman " ( Kaiba : 2000 → 1600 LP ) . Turn 19 : Kaiba Kaiba draws " Blue - Eyes White Dragon " and subsequently Normal Summons it ( 3000 / 2500 ) in Attack Position . " Blue - Eyes White Dragon " attacks and destroys " Red - Eyes Black Dragon " ( Joey : 500 → 0 LP ) . Featured cards . The following cards appeared in this episode . Cards in italics debuted here .