The JSA is battling Sand in 2 places at once. Under the surface of the earth, his body is animating rock and sending to battle the JSA and Cave Carson's crew. In the Dream, his mind has been brainwashed to believe that he is Sandman and the JSA are demons coming to kill him, like the others that were Sandman.
Power Girl grabs Sand's body and forces it to the surface despite the severe burns. In the Dream, Fury and Dr. Fate defeat Glob and Brute, the bad dreams that have brainwashed Sand and who had earlier done the same to Hector Hall. The others hold down Sandman so that Brainwave can break his brainwashing and re-integrate his psyche. He succeeds just as Power Girl reaches the surface with Sand's body and the two combine back into one.
After the celebration, Rex Tyler finally reveals to his wife Wendi that he is still alive.