We herein delineate an unexplored reactivity of 3-hydroxyoxindoles toward Grignard addition enabling a rapid access to a broad range of unnatural C2-quaternary 2-hydroxyindoxyls in high yields. The reaction proceeds via a mechanistically intriguing one-pot 1,2-hydride shift followed by autoxidation pathway. The utility of this method is demonstrated by the synthesis of a new class of bis-indoxyl spirofuran derivatives.T he oxindole moiety is present in a large number of natural products and biologically active molecules. 1 The motif has also been used as a versatile synthetic intermediate for various organic transformations. 1,2 On the contrary, 2hydroxyindoxyl, a pseudooxindole moiety, has remained less explored. The indoxyl ring system bearing a C2-quaternary center is a privileged structural unit present in various natural products like brevianamide A and B, 3 rupicoline, 4 iboluteine, 5 austamide, 6 phytoaliexin, erucalexin, 7 and matemone, 8 as well as biologically active compounds (Figure 1). For instance, 2hydroxyindoxyl alkaloid melochicorin, isolated from the plant Melochia corchorifolia, 9 shows hepatoprotective and antioxidant activity. 10 While 3-substituted 3-hydroxy-2-oxindoles can be easily synthesized by reported methods, 11 the preparation of unnatural 2-substituted 2-hydroxyindoxyls remains a synthetic challenge. Until now, only a few convenient methods are available for the synthesis of pseudooxindole 2-hydroxyindoxyls. Generally, oxidation of indoles using m-CPBA, 12 monoperphthalic acid, 13 and DMDO 14 produces 2-hydroxyindoxyls as byproducts. Davis' reagent has been used to improve the yield of 2-hydroxyindoxyls. 15 Sakamoto et al. 16 reported oxidation of 2-substituted N-acylindoles by MoO 5 • HMPA to directly obtain 1-acetyl-2-hydroxyindoxyls. Later, Jimenez et al. used oxodiperoxo molybdenum complexes to improve the yield. 17 The oxidation of 2,3,6-trimethyl-4-(1H)quinolinone by NaOCl 18 and 2-methyl-3-phenylquinolinone by acidic potassium permanganate 19 has also been used to access the corresponding indoxyls. However, long reaction times and low yields render such approaches less attractive. Other reported approaches for the synthesis of 2-hydroxyindoxyls involve base-mediated ring contraction of 3-hydroxy-2,4(1H,3H)-quinolinediones, 20 acidic hydrolysis of a 3acetoxy-2-phenylindole precursor, 21 butyllithium-promoted tandem cyclization, and autoxidation of 2-(benzylamino)benzamide derivatives (Scheme 1). 22 Recently, Zhu and coworkers reported the synthesis of a 2-hydroxyindoxyl derivative by using a Cu(I)-catalyzed intramolecular C (sp3)−H amidation of 2-aminoacetophenone utilizing O 2 as the oxidant at high temperature (Scheme 1). 23 Later, Yang et al. developed an oxidative cyclization of 2-aminophenyl-1,3-dione using CAN and TEMPO as oxidants for the synthesis of 2hydroxyindoline-3-ones (Scheme 1). 24 Nevertheless, the synthesis of 2-hydroxyindoxyls from readily available starting materials with high flexibility in their substitution pattern is yet to be addressed. Therefore, an e...