Nighttime in Neptune. Corny is delivering pizza, and is walking towards a house when he gets tasered in the back of the neck, and falls down unconscious.
The next day, in the Neptune High parking lot, Veronica tries to tell Dick he ran into her car, but he thinks it's just a scratch and not worth getting upset about. Kelly (Lucas Grabeel) and another kid, a baseball player, walk by and bring up Dick's Unsettling Gender-Reveal at the winter carnival. Veronica takes off.
Meanwhile, in the lunch area, Logan and Hannah are kissing. She teases him about his wanting to be private. In a roundabout way, he tries to figure out what her father thought of the two of them being together, and to his surprise, Hannah says it never came up. They make a date for the upcoming weekend.
Meanwhile, at Mars Investigations, Terrence tells Keith about his house, and basically his life, being investigated. Keith asks Terrence what he was doing at the time of the crash, but Terrence claims he doesn't remember anything he did between the time he was at Shark Field and when he came home, which leaves a six-hour gap.
Back at Neptune High, in the hallway, Madison and some other girls are mocking Marlena (Miriam Korn) for a lesbian poem written to her. As Veronica walks by, Ryan walks up to her and asks if she's heard about the pizza boy muggings. Veronica says she heard about Corny; Ryan says Corny was the fifth victim and he was the fourth. Not only that, but whoever robbed him also took a paper listing all the students that belonged to a gay internet chat room ("The Pirates S.H.I.P" - Student Homosexual Internet Posting), and Marlena's being blackmailed by whoever got ahold of the poem (Marlena had posted it in the chat room). He asks Veronica to look into it.
Later, at Cho's Pizza, Veronica asks Corny what he remembers about the mugging. He mentions he lost his cash, iPod and the pizza, and that when Mr. Cho checked the address, it turned out to be a false order. Veronica asks for a list of the names and addresses the mugger used.
Back at Neptune High, Dick and Logan are walking down the hall, and Dick is talking about an upcoming vacation in Cabo. Hannah comes by and tries to sell them school spirit merchandise, but Logan basically blows her off, and Hannah looks unhappy.
In the girl's bathroom, Kylie (Kristin Cavallari), a cheerleader, approaches Veronica, and asks for her help. Kylie explains Ryan sent her to Veronica, and that she's being blackmailed because she's gay, which Veronica is surprised by. Kylie shows the note she received, and says she doesn't have the money. Veronica instructs her to respond to the e-mail and ask for another 24 hours, while Veronica will take care of the cash and drop-off. Kylie thanks her and leaves.
Later, at Mars Investigations, Veronica answers a phone call and finds out Terrence Cook's credit card statement is being faxed over. She tells Keith about it and asks if he's really working for Terrence event though he's been accused of causing the bus crash; she also wonders if Keith is letting his being a fan of Terrence cloud his judgment. Keith says he's not, and that he's helping out the father of Veronica's friend. Veronica demurs, saying she and Jackie aren't really friends, but respects that Keith's gut is telling him Terrence didn't do it. Keith asks Veronica to make a couple of calls, which she's willing to do, and when she heads out to her desk, she notices Terrence in the reception area, and invites him to go back to see Keith.
In Keith's office, Keith tells Terrence no one in Terrence's immediate circle knows where Terrence was around the time of the bus crash. Veronica comes in and brings up the name Hank Melton; Terrence recognizes the name, but doesn't want to reveal more with Veronica in the room. Once Veronica leaves, Terrence confesses Hank, who owns Mint Condition Car Detailing, works on his car whenever he goes to the Seven Rivers Casino, which is where he probably was during the bus crash. Keith thinks it's great news, because casinos are well photographed, which means there should be evidence proving Terrence's alibi, but Terrence says Leonard Lobo, the casino's owner, isn't liable to do him a favor because Terrence owes the casino a lot of money.
The next day, at Neptune High, Veronica's class is watching the Neptune TV broadcast. Ryan comes in and asks Veronica about her progress. Veronica complains she only had a dummy e-mail address to work with, so Ryan gives her the list of all the names and addresses when the mugger ordered pizzas, and pleads with her to hurry and solve the case. Just then, the anchor of the news mentions there was another mugging the night before, and throws the story to Kylie, who's in the Neptune High parking lot. She's interviewing Kelly, who says he was mugged and robbed. After she finishes the interview, Kylie outs herself, as well as Marlene, and says the mugger can't blackmail her at all. The news anchor, Veronica and Ryan are all surprised.
A little later, Kylie and a somewhat nervous Marlena are walking down the hall together to comments and leering, especially, of course, from Dick. Veronica sarcastically notes how progressive he is, but he tells her to get away because he's bad luck. Veronica leaves, and runs into Carmen. Veronica asks about Tad, and Carmen laughs at how over him she is. She immediately figures out Veronica's not there just to say hi, and Veronica apologizes, but says the pizza boy mugger used Carmen's name while ordering. Carmen doesn't know why, but notes the other names on Veronica's list are of "coconuts" - Latino students who are ostracized within the Latino community for dating whites or doing things like belonging to the honor society. Veronica asks for a list of names of other "coconuts".
A little later, in the Neptune High parking lot, Veronica asks Kelly about getting mugged. She asks how the muggers were able to get the rims off his car so fast, but he blows her off.
That night, Logan goes to visit Hannah. She doesn't want to let him in because of how he pretended she didn't exist in school. He finally gets in by telling her after Lily got killed and Veronica was shot at, he wants to keep her safe. A little later, as they're sitting on the couch, he asks about her parents, and she says they split up because of the arguments they had over money. Dr. Griffith comes into the room, coldly greets Logan, and leaves; Hannah doesn't see anything suspicious because she says her dad is always like that. A little later, Logan is in the bathroom, and when he comes out, Dr. Griffith is waiting for him, telling him to stay away from Hannah. Logan brings up Dr. Griffith's ties to the Fitzpatricks, as well as his false testimony, and walks away, leaving Dr. Griffith furious.
Meanwhile, at the Seven Rivers Casino, Keith is questioning Leonard Lobo (Gil Birmingham), who doesn't see why he should do favors for someone who owes him money, like Terrence. Keith points out Terrence wouldn't be able to pay his debt in jail, and Lobo, conceding the point, asks a security guard to check the tapes of the time in question. He then gives Keith a couple of dollars and invites him to gamble while he waits.
Back at the Griffith house, Logan and Hannah say goodbye. When Logan leaves, Dr. Griffith appears and asks to talk with Hannah.
Back at the casino, the security guard motions for Keith, who is at the blackjack table.
Meanwhile, at Cho's Pizza, Corny takes an order for delivery, and Veronica finds out the name and address given is on the list Carmen gave her. She asks Corny if he's ready to be bait, and Corny says he's the "master-bait".
Back at the casino, Lobo shows Keith the security footage of Terrence at the casino. There's five minutes unaccounted for, which does Keith no good, but Lobo smiles and says it's all he has. When Lobo and the guards leave, a frustrated Keith tries to call someone on his cell phone, but the pit boss points out the casino jams all cell phones to prevent cheating. Keith looks very happy to hear that.
On a dark street, Corny is carrying the pizza when a figure comes up behind him. As he approaches Corny, Veronica tugs on a wire, the person trips, and Backup starts barking at him. The person reluctantly takes of his ski mask, and it turns out to be Arturo (Mario Ardila Jr.), who's been doing the muggings to impress the PCHers. However, he denies robbing Kelly's car (thinking it's a copycat), and he also doesn't know about any blackmailing (not even knowing what blackmailing is). Veronica reveals she's been recording the entire time, and she leaves Arturo taped up to a lamppost with his confession, and Sachs comes by later to pick him up.
The next day, in computer class, Veronica asks Mac to get into the gay chatroom. Mac is extremely hesitant, and Veronica can't understand why until she realizes Mac was the one who set up the security on the chatroom in the first place. Veronica explains why she needs access, and Mac reluctantly pulls up the site and copies it for Veronica on the condition she destroy the copy when she's done.
A little later, Veronica is looking at the site when the basketball coach enters. Veronica asks if she can ride on the bus to the game in her official policy of photographer for the Neptune Navigator, but the coach says he doesn't allow girls on the bus as a rule. Jackie happens to come into the room, and when the coach leaves, she offers Veronica a ride, which she accepts. They joke about what being seen together will do to each other's reputations, and Jackie leaves. A little later, Ryan comes in, and when Veronica hurriedly explains she made Mac give her access, says it's okay as long as he didn't. Veronica explains Arturo was the mugger but not the blackmailer. She thinks the blackmailer is someone on the board, which Ryan can't believe. Veronica brings up a poster named "MIZZ P" who promised the "outing of all outings" before disappearing, but Ryan says that was Peter Ferrer, one of the people who died in the bus crash. Ryan mentions there's been another blackmail letter, but to Veronica's exasperation, he can't give her a name, though he did say the person could talk to Veronica.
Meanwhile, in another classroom, Hannah is studying until Logan, pretending to be from the administration office, hands the teacher a note pulling Hannah out of class. Once Hannah and Logan are alone in the hallway, he tries to kiss her, but Hannah brings up Felix's stabbing. Logan says he didn't do it, claims he didn't know who Hannah was when he saw her at the carnival, and says her father is a drug addict and in deep to the Fitzpatricks. Hannah doesn't believe him, but Logan tells her to check the story out before he leaves.
Meanwhile, at Mars Investigations, Keith shows Terrence the photos of him at the casino, and says they're proof of his innocence. Terrence is reluctant to take them to the sheriff, because it means he's exposed as a gambling addict, but Keith says he has leverage on Lamb.
A little later, Veronica walks by Kelly's car, which has "KUZZIKAN'' as the license plate; Veronica recognizes it as being similar to the screen-name of one of the posters in the gay chatroom. A little later, she's inside Kelly's car, and points out the coincidence to Kelly, who looks alarmed. He admits he made up the mugging, and in fact stole his own rims to pay off the blackmailer because his life would be over if he came out. He gives the blackmail e-mail to Veronica and mentions it contains an address to drop off the money, which Veronica is surprised about.
That night, Hannah looks at her father's phone and sees it contains past calls to the "River Stix". She also looks in her father's bathroom and discovers cocaine hidden in his medicine chest.
The next day, at Mars Investigations, Veronica and Ryan track the response Kelly sent as it makes its way from the post office. Ryan says he recognizes the address it ended up at. Veronica smiles...
...and the next day, in the hallway, Veronica greets Kylie as "blackmailer." Kylie gives Veronica the bug she planted, and explains her mother, who works at the post office, was the one who got the letter. She also says she merely wanted to out herself, as well as the more reluctant Marlena, but she doesn't care about Kelly, and gives Veronica back the money. She asks only that she be the one to tell Marlena.
Meanwhile, Logan waits outside of art class for Hannah. When she comes out, she tells Logan he was right about her father, and they walk off together, passing Veronica and Mac. Mac mentions how Hannah is the daughter of a plastic surgeon, and Veronica looks stunned and repulsed.
That night, Jackie takes Veronica to Woody's airplane hangar, where Terrence keeps all of his cars. Veronica jokes about him having a car for every day of the week, and Jackie says he used to have one for every day of the month.
Meanwhile, at the sheriff's department, Keith shows Lamb the photos and says he wants Terrence cleared of suspicion for the bus crash. Lamb still thinks Terrence could have used a pay phone to cause the crash, and he also thinks Terrence is capable of it. Keith pulls out his hole card; the recording Veronica made of Lamb blackmailing Terrence. Lamb looks less cocky then, but points out if Keith and Terrence release the recording, Terrence still has more to lose than he does.
A little later, Jackie and Veronica pull into the hangar in the convertible Veronica is driving, and gush about Wallace's performance at the game, though they both agree they won't tell him about it the next day to keep him humble. Jackie sincerely thanks Veronica for her and Keith's help on her father's case, and Veronica says it's okay. Veronica turns off the engine but isn't able to put the top back up. Veronica, figuring it's just a blown fuse, goes to get a screwdriver, but when she opens the cupboard to looks for one, she looks stunned...
...and at the Mars apartment, she wakes up Keith to tell him she saw detonators and explosives being stored where Terrence parks his cars. Keith looks unhappy at the news.
This episode contains examples of:
- All Men Are Perverts: Corny remembers ones of the students whose name was on the fake pizza orders, because he was hoping she'd answer the door wearing only her "unmentionables".
- And, of course, Dick.
- Call-Back: Carmen and Ryan.
- Chekhov's Gunman: Leonard Lobo and Peter Ferrer.
- Forced Out of the Closet: Veronica investigates blackmail letters that certain students have been receiving, including one girl whose gay status would be revealed if she did not pay up. When Veronica figures things out, she discovers that the perp was a gay student who just wanted to out her girlfriend so they could be together in public.
- Foreshadowing: The detonators and explosives Veronica finds, and Peter's plan for the "outing of all outings".
- Karma Houdini: Kylie forced Marlena out of the closet, making her the target of a huge amount of bullying and homophobia, so they could hold hands in public. Marlene forgives her and they get back together, with Kylie getting everything she wants.
- Mistaken for Gay: Briefly.Mac: Veronica, you're not...
Veronica: No, I'm just curious. - Shout-Out: Madison compares Marlene's poem to an Indigo Girls song.
- When Keith says Jackie is Veronica's friend, Veronica responds that she and Jackie aren't exactly The Sisterhood of the Traveling Pants.
- Dick calls Veronica "rich-guy kryptonite."
- One of the names on Ryan's list is the real name of the person who recapped the show on Television Without Pity.
- Terrence doesn't want his gambling to get out because he'll be called the next Pete Rose.
- When Keith tells Lamb to clear Terrence of all suspicion, Lamb sarcastically wonders if Keith is trying to pull a Jedi mind trick.
- Veronica calls Wallace's basketball talent "Jordan-esque".
- Take That!: The blackmail e-mail Kelly received is signed "Rick Santorum". Santorum is a Pennsylvanian senator notorious for his anti-gay statements.
- Wham Line: "I'd be a willowy blonde too if my dad was a plastic surgeon."
