Jackal transforms after Natsu was handling him...increasing his explosion power. Natsu still defeats him in the name of friendship. Jackal commits self destruction due to his failure. Natsu weakened can not stop the inevitable city wide explosion so Happy picks Jackal up and flies him into the upper atmosphere where Jackal explodes. The power of friendship saves Happy who comes out burned but protected by his afro-ed fur coat?
FUCKING FAIRY TAIL