In one fateful performance, Punny Bones cracked a joke about Baba Yaga's defeat in Spielburg Valley and her transformation into a frog. Unbeknownst to the jokester, the ogress was amidst the audience, fully recovered from her amphibious condition. Outraged, she cursed him to have no sense of humor.
Finding himself without his only skill in the world, Punny Bones began to track Baba Yaga in the hopes he could convince her to lift his curse. Eventually, he followed her to the valley of Mordavia -- which he entered through means known only to him. Despite the xenophobia of the townspeople, he rented a room at the Hotel Mordavia and attempted to entertain the townspeople while he hunted for his ogress nemesis.
Shortly after his mysterious arrival, the Hero also appeared in the valley. Fully aware of the Hero's reputation, Punny implored him to help him deal with the ogress. He also gave the adventurer a rubber chicken. Shortly afterwards, the Hero returned with a Good Humor Bar. After eating the magical treat, Punny's sense of humor was restored. He gratefully taught the Hero the Ultimate Joke, performed one last show for the inn, and departed as suddenly and mysteriously as he had arrived.
He then made his way back towards his homeland of Zurich, although he detoured south to the city of Silmaria where he stayed at Gnome Ann's Land Inn and flirted incessantly with Gnome Ann Agrama, leaving her lovesick in his wake.