Iron Fist Season 2: 17 WTF Moments

2. Plot Twist! Colleen's Surprising Ancestry

After being fully imbued with Iron Fist powers, Colleen's arc this season is wrapped up with a letter she receives from Danny, who has of course departed on his spirit quest with Ward.

He notes that the story Colleen's mother told her as a child, The Pirate Queen of Pinghai Bay, was one he himself was taught as a child in K'yun Lun. Furthermore, it wasn't a mere story: the first woman to defeat the dragon was a real person named Wu Ao-Shi, who Danny suspects may be Colleen's ancestor.

This would explain the otherwise extremely coincidental nature of Colleen being able to receive the Iron Fist powers while also having that story read to her by her mother. Danny himself believes it was all fated to be, and from the clues we have so far, that certainly seems to be correct.