The episode begins with Bart going through Chuck’s apartment, in order to find his envelope. Chuck returns and sees the condition of his apartment, with things strewn everywhere. “You find what you looking for?” he asks Bart. Dan and Serena are in bed together and seem happy in each other’s company. Dan wants to go outside, but Serena says they can’t be seen together in public until they are absolutely sure their relationship “is real”. “I’m pretty sure, I can’t think of any reason to hold back” Dan says. Serena counters that, all their friends are mad at them so they need to go out and first make amends.
Serena decides to start with Blair and asks Dan to start with Nate. Ivy enters Chuck’s apartment and tells the both of them “I think I have what you are looking for”. Serena pays Blair a visit and tells her she wants to make amends. Blair isn’t in a forgiving mood, but Serena insists on sitting in Blair’s office until Blair forgives her. Ivy mentions how she found “the microfilm in the painting”. Ivy concludes that the film means a lot to them. They offer her money but she doesn’t want money, she instead wants revenge on Lily, for all she has done to her. “All I want is for Lily to be left with no one and nothing” she says. “Whichever one of you can make that happen first, can have the microfilm,” she adds.
Ivy then meets up with William in a hotel room. Turns out, all that Ivy is doing, is at his behest. The two then kiss each other. Blair is worried her new line might not be as successful as she was hoping, so Serena suggests Sage be brought in to endorse her line, as Sage is very popular. Serena feels Sage might help them, just so she can keep her and Steven apart. Serena plans to give Sage an impression that she and Steven are getting back together, with the help of an old photo, of her and Steven together. The photo can be sent to Gossip Girl. Sage seeing the photo would once again come to Blair for help in order to split up Serena and Steven. Blair is happy with the plan, which is then set in motion. Bart tells Lily that Ivy will give back the microfilm, if Chuck or he destroys Lily’s life. “With Ivy I am not surprised” Lily says.
Bart feels Chuck might take up Ivy “on her offer”. “Charles would actively never hurt me” Lily says. Dan apologizes to both Nate and Chuck. “If you really mean that, I just had an idea” Chuck says. Serena’s plan works and Sage comes to Blair for help. Blair tells Sage what she wants in return for helping her. Lily asks Rufus to help her get the microfilm back, as it would not only hurt her but also her family. Rufus though, is in no mood to help her and turns down her request outright. Then while on his way back, Rufus at a distance sees Ivy kissing William. Rufus is visibly enraged at what he just saw. Bart informs Nate that he is a partner in the Spectator, something that Nate wasn’t aware of. He asks Nate to help him defeat Chuck, if he wants to keep the Spectator.
Sage gets Blair the meeting with all the popular girls of various schools of the area. They on Sage’s insistence agree to come to Blair’s event. Chuck tells Ivy that the microfilm possibly has information which will implicate Bart, and in order to take down Lily he will make sure Lily too looks like Bart’s partner in crime. Ivy like the idea, but also wants Lily to face jail time and a public humiliation. Chuck agrees to give Ivy what she wants, if she gives him the microfilm in the night at Blair’s event. Ivy agrees. Rufus returns home and sees Dan looking through his apartment. Dan lies that he is there to pick up some of his stuff, but adds that he is mainly there to see him.
He tells Rufus that he is there to apologize to him and Ivy. Rufus in turn apologizes to Dan and says he was right about Ivy and that he shouldn’t have trusted her. Rufus confronts Ivy about what he saw, and Ivy owns up to liking someone else. He as a result asks her to pack her bags and “get out”. Sage figures out that she has been played by Blair and decides to do something about it. Bart calls Ivy and tells her Chuck is simply setting her up and won’t keep his end of the bargain. Bart gets Nate to confirm it. “Luckily I have an offer for you” Bart says. Sage and her friends arrive at Blair’s event. Sage tells Blair that she knows the truth. She and her friends then decide to bring down Blair, by openly trashing her new line. Blair on her part decides to catch hold of Serena, so she can fix things with Sage.
Bart meets Ivy and tells her he is divorcing Lily. He as proof shows her the papers. Ivy feels it’s hardly enough, as Lily has been divorced a number of times. “I want her humiliated” Ivy says. “What did you have in mind?” Bart asks. She then asks Bart to take off his clothes and herself, begins stripping. Blair is pleasantly surprised when she finds out, Sage’s friends really like her new clothing line. They therefore aren’t paying any heed to what Sage has to say. Nate tells Chuck, what Bart made him do. Ivy on the other hand wants to take a couple of snapshots with Bart, to make it look like they had sex. He asks Ivy to hand him the microfilm, before he gives into her request.
The moment Ivy hands the envelope to Bart; Chuck enters the room and asks Ivy to stop. “It is too late” Bart tells Chuck and then looks into the envelope. Turns out, the envelope is empty. All the three are visibly shocked on seeing this. Rufus pays Lily a visit and hands her the microfilm. Rufus tells Dan he has returned to Lily what Ivy had stolen. Dan immediately texts Chuck saying “Lily has it”. Chuck immediately leaves, with Bart and Ivy totally oblivious to the fact that Lily has the microfilm. Bart threatens Ivy and asks her to get the microfilm or the person who can help. She is visibly worried and calls William.
Blair’s event is a resounding success. Also, Serena and Blair make up and are back to being best buds. Chuck arrives at Lily’s apartment and tries talking to her. He tells her how Bart was ready to sell her out, but Lily doesn’t believe him. She instead throws the microfilm into the fire. Ivy tells William about Bart’s threat and how sacred she is. William calms her down and says they need to leave and regroup for now. Chuck tells Blair, they can’t be together as she kept her end of the deal but he couldn’t and has failed.
Dan tells Serena she is “the one” and Serena says it back. The two then decide to go public, now that they have made amends. Serena goes to get some Champaign to celebrate, just then Dan gets a call from Georgina and tells her “I’m writing the Serena chapter” and hangs up. The episode ends at this point.