Cyrus goes to the Observatory and speaks to Erasmo about the Restless League. Erasmo then complains about the ghosts of the lighthouse, claiming that they always light the torch and signal "Flash! Flash! Fllaaash!"
Cyrus must then light the torch and signal "Flash! Flash! Fllaaash!" in order to attract the attention of the Restless League. A ship will come with a woman who says that she will not let Cyrus see Basil until he brings proof she can trust him.
Cyrus must then go back to Stros M'Kai and interrogate about the Smuggler's Den. He then learns from Krisandra that Lakene lost his wife's silver locket gambling in the Smuggler's Den. Lakene tells Cyrus that, if he gets the locket back, he will tell him the password. Rollo is in possession of it. Rollo will not give him the locket, so Cyrus must wait until he leaves his house and steal the locket. When presented with the locket, Lakene says that the password is "spoon."
Cyrus goes back to the Smuggler's Den, and the man there will have a symbol of the Restless League. Cyrus persuades him to hand over the symbol, then rushes back to the woman, who will then grant him passage to their hideout.