Having been demoted from Sergeant to Private, Joker is still at the Khe Sanh base, which is about to be abandoned by American Marines after withstanding an extended siege by the North Vietnamese Army.
Joker blames their deaths on "The Phantom Blooper": an elusive enemy, supposedly American and armed with an M79 grenade launcher, who fights alongside the Viet Cong against his countrymen.
He sets up one of his squad-mates to be killed in an attempt to draw the Phantom Blooper out of hiding, then forces an inattentive Marine on guard duty to hold a live hand grenade with the pin out.
In Joker's mind, his best chance is to fool them into believing he has converted to their cause, to accompany them on an attack against an American position, and then to make his escape when the shooting starts.
When a team of Army soldiers arrives to rescue him, he is wounded in the ensuing firefight but manages to shoot down one of their choppers with a discarded M79 before passing out and being evacuated from the area.
He quickly makes it clear that he does not regret any of his actions as a Viet Cong captive, and he expresses his disgust and outrage at having been sent by his country to fight in a futile war.
Deciding there is nothing left for him in the United States, and realizing that he has become the Phantom Blooper he was once obsessed with stopping, he sets out to return to Vietnam and his life among the Viet Cong villagers.