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For clarification, both players need to have a finizen. The finizen that evolves needs to be at least lv. 38. In this example, player 1's finizen will be the one that evolves.
1. Player 1 needs to battle and defeat a wild pokemon with their finizen, player 2 needs to have their finizen outside of their ball while the other finizen is in battle.
2. Once Player 1's finizen levels up after said battle, it should evolve