The next morning Útgarða-Loki leads the company out of the stronghold and reveals the truth. Everything was sorcery. Logi was wildfire, Hugi was thought, the horn was connected to the sea, the cat was Jörmungandr and Elli was old age itself. Thor raises Mjölnir in anger, but the stronghold vanishes.
Um morguninn fór Útgarða-Loki með þeim út ok mælti: 'Nú vil ek segja þér hverr ek em. Ek em Skrýmir sá er þér hittið í mörkinni. Þrjár dalverpi þær er Mjölnir minn gjörðist, þær gerðu þrjár dalverpi í fjalli.'
In the morning Útgarða-Loki accompanied them outside and said: 'Now I will tell you who I am. I am Skrýmir whom you met in the forest. The three hammer-blows of Mjölnir created three valleys in the mountain.'
Útgarða-Loki sagði: 'Þú munt aldrei hér koma í borg mína, ok mun ek sjá til þess með fjölkynngi.' Þórr greip þá til Mjölnis ok reiddi hátt, en er hann horfði þangat er borgin hafði verit, sá hann þar engar borgir en fagra sléttu.
Útgarða-Loki said: 'You shall never again enter my stronghold, and I shall ensure that through sorcery.' Thor then seized Mjölnir and swung it high, but when he turned toward where the stronghold had been, he saw no stronghold there, only a fair plain.