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But then a rabid Sentret kills him.
After all this, there should be a new stairway near Mewtwo's sprite, on the Cerulean Cave.
Go down, and meet Professor Oak.
(If there isn't, then you must restart and make sure you have a Sentret in your party.)
Professor Oak turns into a Mewtwo with two abnormally sized Carnivires floating beside him, and you must battle all three before the Carnivires eat you.