"I saw a giant spider eat everybody."
"You saw it EAT everybody, huh?"
"Then it shrank down into a tiny spider."
"But after it had eaten everyone?"
"Yes. It was a giant, magic spider that became a tiny spider."
"And you saw it eat everyone?"
"So it didn't eat everyone; it didn't eat you."
"Last week when sister's school had no power she lied and said it was a giant tree that fell on the power lines, but it wasn't. It was the giant, magic spider and he ate them."
"How do you know?"
"I saw it!"
"But how did you see it if you were at school?"
"I saw it with my magic eyes. You didn't know I have super power magic eyes."
"No, no I didn't."
<then she changed the subject as though I wouldn't have a dozen follow up questions to that.>