No that happend afterwards. The moon is still alright during this scene and Zhao fucks it up shortly after. Then Yue dies, and the moon is recovered again.
no, the moon was like murdered by zhao during katara and zuko's first fight, not the re-match, while they were on the north water tribe sacred place. After katara was defeated, zuko takes aang; this is from when katara goes to recover him
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