Blyue was in the pirate crew of Dorry and Brogy, but their ship sunk 100 years ago in a heavy storm. He believed that Brogy and Dorry had drowned, as they ironically thought the same fate of him. Blyue survived, however, and was washed ashore on the "Vacation Island for Pirates".
He felt insulted by his comrades and desired to be a pirate again. When he heard of the Legend of the Blue, being that one can fulfill one's wishes thereby, he had an idea. He would open a hotel and send pirates on a treasure search. He did not make any customers for 100 years, though, until Luffy and his crew showed up. Blyue then took Vivi prisoner and provoked them, forcing the Straw Hats to battle all their old foes and clear his resort's arc-themed challenges. He fought Luffy after Vivi escaped. Blyue lost, but fulfilled his desire nonetheless.
The Blue finally shattered. When Luffy told him that Brogy and Dorry were still alive, he was glad and realized that his friends were still alive, apologizing to Luffy afterward. He told Luffy that he would also become a pirate again someday. He wanted to look for a crew as great as Luffy's.