In episode three, Morpheus pays a visit to Johanna so he can get his power back. He immediately starts having a disagreement with her, but they eventually decide to strike the bargain; Morpheus will take away all the nightmares Johanna is suffering from every night and in return, she will help him get his sand back.
Johanna reveals she was the last person who saw the pouch of sand, having bought it in the estate sale without even knowing what it really was, but now it is gone, left in a flat of her ex-girlfriend Rachel.
Johanna also mentions she had to flee her relationship with the ex-girlfriend Rachel since love “never ends well”. To which Morpheus agrees, showing he is talking from a personal experience.
Meanwhile in Buffalo New York, John and Ethel are having a conversation. She has come to give the amulet of protection to John all the while warning him that Morpheus is coming for all his stolen possessions.
The episode ends on quite a bittersweet note with Rachel being wasted away, consumed by sand in Morpheus’s pouch. At the very least, he is able to give Rachel a peaceful end and grant her a beautiful dream of the happy ending with Johanna. However, as for Johanna herself, she is left heartbroken.