Daniel's absolutely epic The Dog Bites Back moment against Terry Silver, and subsequently, all of the Cobra Kai students rejecting Silver after seeing him for the fraud he truly is.
Demetri finally getting to beat up Kyler is this inand out of the universe. Demetri also calls him a bitch just to sweeten the deal.
Genius Bonus: Mike stealing the Rembrandt from Silver's house seems like a useless move: even with Terry being arrested, he can reclaim it, and you'd expect Mike to be arrested for stealing it. Except that savvy viewers recognized the painting as Storm on the Sea of Galilee, which was stolen in 1990 and has a $10 million reward for its return. Hence, Mike can claim the bounty legally, and Silver can't demand it back without admitting to possessing or buying stolen property. And as the Fridge page points out, this also explains why he didn't call the cops on Chozen, Johnny, and Mike—having to explain why the stolen property is hanging proudly in his living room would be awkward, to say the least.
Rescued from the Scrappy Heap: Stingray was a glaring Scrappy for many in season 2. His writing and screen time were improved in the last couple of seasons, and the toned-down acting makes him a surprisingly sympathetic and compelling character.
