Chapter 97:
Haku develops a crush on Wendy but tries to use the safety of her friends or the outcome of their fight to force her into going out with him. Irene can apparently talk through Wendy and has her agree to the terms just because she was bored watching them talk and wants them to get to beating Haku down. Wendy is indeed immune to the plushification and can reverse it in others, but she is outmatched in power and speed from the White Tiger Dragonslayer, who claims to be FTL. Not only that, he was able to plush Irene out of Wendy since he can do that to spirits and personalities, and since Irene doesn't have a body to go back to Wendy can't cancel it. Meanwhile, Laxus is losing to Kirin.
Chances are Laxus gets up and gives a showing for Round 2, though I do kind of hope Laxus loses to make the outcome of the overall game have more tension. Otherwise Selene's decision to even bring Laxus into this seems suspect, but of course she may not give a fuck if its all just entertainment to her.
As for Haku, I'm wondering if plushing Irene will actually be his downfall. We know you can still use magic in plush form, and he just gave Irene a separate body from Wendy. It may be a plush, but her two lieutenants if I recall were inanimate objects she turned into humanoids, so...yeah, he still may have given her a body.