Episode 20 recap: The village chief is the murderer who killed Xiao Yong.
While investigating the case, Jiang Li discovered a sudden spontaneous combustion in a certain area. The villagers believed it was ghost fire and screamed in fright. Jiang Li asked Shen Xiuning if he remembered the case of Chunyan's murder and the letter Cui Lan wrote to her. At that time, a spontaneous combustion occurred. Upon hearing Jiang Li's words, Shen Xiuning suddenly realized that the so-called ghost fire was simply the spontaneous combustion of phosphorus.
Jiang Li knew that Shen Xiuning would have nightmares, so she wanted to accompany him to sleep as usual. However, Rui Xue blocked her at Shen Xiuning's door and wouldn't let her in. After Rui Xue left, Jiang Li noticed that Shen Xiuning had locked the door, so she decided to climb in through the window. As she opened the window, she happened to see Shen Xiuning being tormented by a nightmare, so she quickly woke him up. However, when Shen Xiuning woke up, he coldly told her to leave.
The next day, when Shen Xiuning woke up, he found Jiang Li sleeping outside the window. There was a red string tied to his wrist, with the other end tied to her wrist. Shen Xiuning was about to untie the red string, but Jiang Li asked him to come out. She led him to meet Fengnian, Rui Xue's brother, and inquired about any conflicts between the village chief and Gao, the supervisor. Fengnian told them that Gao came to Shen's village to collect pearls, but whether there was any conflict between him and the village chief was unknown.
When Shen Xiuning examined the body of Xiao Yong, one of Gao's subordinates, he found some powder in the crevices of his nails. Through inquiries at a pharmacy, the shopkeeper informed them that the village chief had been using that type of powder to treat an arm injury recently. Shen Xiuning and Jiang Li confronted the village chief, asking him why he killed someone. Upon hearing the village chief's vehement denial, Jiang Li presented the evidence. The village chief looked at his injured arm and realized he couldn't hide it anymore. He admitted that he killed Xiao Yong but still believed that the water ghost was responsible for Gao's death.
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