The Pegasus Cup is the second tournament at Olympus Coliseum in Kingdom Hearts. Afterward, Phil puts up the trophy in the Lobby. In Kingdom Hearts II, the Pegasus Cup trophy was accidentally mislabeled as the Phil Cup trophy, and vice versa.
When the battle begins, first focus on battling Yuffie as she has less health than Leon and her defeat means that she cannot heal him. However, try to keep an eye on him because he can still attack Sora in the middle of battling Yuffie.
Yuffie tends to throw her shuriken towards Sora. Use Guard to send them back at her to stun her, then pound her with combos and special abilities. Try repeatedly assailing her, as that means she has barely any chance of healing herself. At low health, Yuffie can generate a massive shuriken. Stay away from her when she does that, and use Guard to send it back before repeating the strategy until she falls.
Once Yuffie is gone, Leon remains. His moves are mostly identical from when Sora last fought him in Traverse Town, but remember that Sora has more abilities than last time. Guard his attacks and strike back with any abilities. When his health hits the green bar, he charges up his Gunblade and infuses it with energy, increasing its range. He has a jumping attack (telegraphed by him roaring, "It's over!") that has massive range, but it can still be guarded or dodged. Leon has a couple seconds to yank his Gunblade out, so take the chance to retaliate. Eventually, Leon will fall, and the Pegasus Cup is yours.
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