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Its an ability taught by Mekani-jiisan that will allow Starfy to reach heights that he would normally not be able to reach as long as you don't get hit by spikes or enemies. The upgrade will give it a new design and add a jet engine that will allow starfy to freely move anywhere at any direction at a faster speed.
Here is the download link for the entire Densetsu no Starfi 2 soundtrack with all 55 songs plus 7 sound effects in .mp3 format, all compressed in a .zip folder.