The Straw Hats climb the treacherous rapids of Reverse Mountain to reach the Grand Line, only to be greeted on the other side by a colossal whale named Laboon and a pair of scheming strangers. A short arc that opens the Arabasta Saga and seeds threads that pay off many years later.
Sometimes called the Laboon arc, this is the seventh story segment and the first of the Arabasta Saga. At five chapters it stands as one of the manga's briefest entries. The crew finally tackles the only sanctioned route into the Grand Line, a mountain whose rivers flow upward.
The chapter pairs spectacle with melancholy, introducing the lighthouse keeper Crocus, the heartbroken whale Laboon, and the mysterious agents Mr. 9 and Miss Wednesday, whose identities and organization will shadow the crew for the rest of the saga.
Caught in a storm, Nami realizes their entry point demands a climb up Reverse Mountain. The ship drifts into the windless Calm Belt, where Sea Kings nearly sink them, before they scramble back and ride the rushing canal upward. Luffy braces the Going Merry to keep it from smashing apart, and the crew plunges down into the Grand Line at last.
They immediately collide with Laboon, an enormous whale blocking the route who swallows the ship whole. Inside, the crew meets Crocus, who tends to the creature. The whale has been ramming his head bloody against the mountain for over fifty years, still waiting for a pirate crew that left him behind. Luffy, after a fierce exchange of blows, declares himself the whale's rival and paints his Jolly Roger on Laboon's brow, promising a rematch once he circles the Grand Line.
Crocus explains the Log Pose and how the Grand Line's islands each carry unique magnetic fields leading toward the final isle, Laugh Tale. After fending off the assassins Mr. 13 and Miss Friday, the two agents persuade the crew to ferry them home to Whisky Peak. Bidding Crocus and Laboon farewell, the Straw Hats sail onward as Crocus wonders whether Luffy is the one he and Roger long awaited.
The crew has officially entered the Grand Line and gained a Log Pose to navigate it. Luffy's vow to reunite with Laboon plants a seed that blooms much later when the Straw Hats meet Brook, the last surviving member of the whale's old crew, who joins them to keep that promise. It is also revealed down the line that Crocus once sailed with the Roger Pirates and spent years searching for Laboon's lost companions.
By agreeing to escort the two agents to Whisky Peak, the crew unknowingly draws closer to Baroque Works, the organization that will drive much of the Arabasta Saga. Key Grand Line lore, including the Calm Belt, the Log Pose, and the location of One Piece on Laugh Tale, is established here for the first time.

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No, the Reverse Mountain Arc is not filler. It is a canon storyline and the first arc of the Arabasta Saga, based directly on the manga.
In the Reverse Mountain Arc, the Straw Hats climb the upward-flowing rivers of Reverse Mountain to enter the Grand Line, meet the whale Laboon and lighthouse keeper Crocus, and agree to ferry the agents Mr. 9 and Miss Wednesday to Whisky Peak.
No, One Piece is not located at Reverse Mountain. The Reverse Mountain Arc simply establishes that the treasure lies on the final island, Laugh Tale, a piece of Grand Line lore explained by the lighthouse keeper Crocus.
Luffy fights and befriends the whale Laboon in the Reverse Mountain Arc, painting his Jolly Roger on the whale's brow and vowing to have a rematch once he has circled the entire Grand Line.
The lighthouse keeper Crocus explains the Log Pose in the Reverse Mountain Arc, a navigational device that reads the unique magnetic fields of each Grand Line island to guide sailors toward the next destination.
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