Blair and Jenny face off and each sends numerous of fake rumors to Gossip Girl, such as Jenny wading in a pool to collect the coins at the bottom. Meanwhile, Dan discovers Asher kissing another boy. Likewise, Eric tries to warn Jenny that Asher is not what he really looks like, but Jenny mistakes it for jealousy on Eric's part. When Dan confronts Asher about it, he denies it, and when Jenny joins them, he makes Dan seem like an over-protective brother. Jenny and Asher host their own high-society party, which Blair is not invited to.
Meanwhile, Serena believes that Georgina has left town, but is jolted back to reality when Georgina sends her a USB showing a clip of Georgina and a man. It is believed that will also show what Serena did before leaving, but Serena closes it before anything is revealed. Dan and "Sarah", who is really Georgina grow closer.
When Dan tips of Gossip Girl that Asher is gay, Jenny becomes irritated, believing it as another rumor that Blair posted. Her relationship with her father becomes strained, and he finds parenting advice in Lilly van der Woodsen. Jenny finds Asher and he says sneeringly that he has been using her to coverup his sexuality. Hurt, she vents at Dan saying "that she was using him too". Blair steals Asher's cellphone to truly find out his sexuality, and sets the cellphone to forward all his texts and photos to her cellphone.
Georgina stays for dinner with the van der Woodsens, much to Serena's displeasure. After strained conversation, Georgina reveals that Eric, too, is gay. After Lilly breaks down from realization, Eric and Serena leave the room, where Eric tells Serena that he was the boy Asher was seen kissing by Dan. At the party, Blair crashes and walks straight to Asher and says that, since the other boy she realizes is Eric, whom she cares about, she will not tell Gossip Girl that he is gay, but is warning she knows. Eric comes up with her, and when Asher still does not tell, Eric walks away, telling Blair to "send it". Blair then sends all the texts to Gossip Girl.
Meanwhile, when Serena finds out that Sarah is really Georgina, she tells Dan not to trust her. He, thinking she is jealous, becomes frustrated becomes she has become distant. Serena talks to Georgina separately, Georgina states that she is only doing this because she wants things to go back to the way things used to be. Serena still rejects her, and Dan, Vanessa, and Georgina leave Serena by herself. That night, Serena,desperate, goes to Blair's house, where after Serena becomes more and more desperate, she says that the real reason she left was because she killed someone. The episode ends on that note, accompanied by saw-like music.
After Georgina reveals the true reason Serena left Manhattan, Serena goes back into her old habits. Her friends Blair, Nate and Chuck-in order to help her-have to put their differences aside. Unfortunately, Serena is too ashamed to share the truth with Dan, therefore he assumes the worst about his girlfriend. In the promo, Serena reveals to Dan that she slept with an anonymous person.
Meanwhile, Rufus is excited when his band is invited to perform at a Rolling Stone-sponsored concert, but Lily is the last person on earth he expects to see at the performance, especially since her wedding rehearsal dinner is the same night. Blair decides to take matters into her own hands and deal with Georgina Sparks (Michelle Trachtenberg); Lily prepares for her wedding day with Rufus on her mind; Serena finally tells Dan the truth about her past.
Georgina's parents are tired of her antics and tell her that things won't be alright if she doesn't get her act together. Blair is there for support... or is she? The Sparks want to send their daughter to a boot camp for troubled girls. At the wedding, Bart, Lily, Chuck and Eric are all smiles. Things between Dan and Serena aren't that peachy. Rufus surprises Lily in the bridal chamber.