The warehouse, originally owned by Wai-Go Industries, was used by Madame Gao to organize Da Jue Zhan between Danny Rand and the Hand warriors. Rand went to the facility where the challenge took place and faced Gao and then he followed her to the first of his challenge. Rand was challenged to defeat the brothers Andrei and Grigori Veznikov. The brothers cut their hands and made a circle with their blood which represented the limits of the arena. Then they attacked him from both sides making Rand unable to counter their attacks. However, Rand managed to kick Grigori out of the blood circle and break one of Andrei's arms and forced him to surrender.
After defeating them, Gao led Rand to the second challenge. In it, Rand had to defeat the Bride of Nine Spiders who took advantage of his naivety by seducing him and subtly inject poisoned needles into his neck which quickly began to affect him. With his face on the fence of the arena, Rand focused himself again and delivered a powerful kick to her head, incapacitating her.
Gao then led him to the third challenge. In the third challenge, he had to defeat Scythe. He then proposed Rand to choose a weapon which Rand replied by stating that he was the weapon. Scythe picked a naginata and they started to fight. During the fight, Rand managed to break Scythe's weapon, which made him pick a scythe. Not long after that, they went to the next room. Fortunately for Rand, the room was full of scaffolding which put his adversary at a disadvantage since he didn't have enough space to use his scythe correctly. Eventually, their combat led them to a final room. There, Danny used his Iron Fist to break Scythe's weapon. He then managed to enter a state in which he was completely mentally focused and he punched his adversary to the ground with the power his Chi.
Before Rand was able to honorably defeat Scythe, Gao stopped him, forcing him to choose between dishonorably forfeit the duel or let Sabina Bernivig die. Limited in choice, Rand chose to spare him, managing to free Sabina from the Hand. Before Rand and Bernivig left the warehouse, Gao baited him with information about his father.