The sprites soon exhibit the ability to lift Aladdin and his friends into the air, thus allowing them to "fly" on their own without Carpet. Feeling left out, Carpet wanders off to be with Iago (who shouts at the sprites that he already knows how to fly) and Abu. Things start out friendly but quickly turn ugly when the sprites carry Aladdin and company away in the clouds and refuse to let them go home.
Genie believes he can convince them, and makes himself very big and starts yelling, demanding the sprites end their fun, but the sprites make a plan, and work together to fly around genie in circles, causing genie to involuntarily shape-shift and find himself tied-up completely in a knot. Genie is left to try to free himself, while the sprites make it clear to Aladdin and his friends that they're in control. Their demands of endless play anger Aladdin and the others, to which the sprites reply that they "don't like them anymore".
To teach Aladdin and his friends a lesson, they lift the palace into the air, throw Aladdin and company inside, and drop it to the earth. Genie strains to save the day but it's Carpet who comes to the rescue by tricking the sprites into chasing him around and around the falling palace, thus slowing its progress. Everyone praises Carpet, and Aladdin vows to let Carpet do the flying from here on out.