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All sorts of MCYT characters but mostly Witchcraft SMP. In this world, those with magic are ostracized because they're different. As a result, when they hear about this school that apparently allows and even encourages magic, almost all magic users flock to it.
Then there's this competition. Bertha, one of the teachers with a strange goat named Mertha, tells them that those with magic can enter it and find out who's the strongest witch.
It's basically the trials in Witchcraft SMP with the winners becoming stronger, except the losers mysteriously go missing after their matches.
The kids are getting spooked so they look into the mysterious principal, but Bertha warns them to stay away for their own safety. Mertha already paid the price by being turned into a goat and Bertha lost his face. He doesn't want to know what the principal would do to the kids.
But the students have to save their missing friends, who they find out are being drained of their magic. The competition was just a cover for a scheme to steal the magic from the strongest children, all for the good of the principal.
Well, the principal certainly hadn't realized what happens when you mess with kids who have access to magic.