The episode opens with the fallout of the Red Circle’s video. The students idolise them, the adults are livid and the Southside Serpents who in admiration of the Black Hood, want Archie dead.
In the Blue and Gold editor lounge, Betty goes through the school mail to find a parcel for her from the Black Hood.
The Hood praises Betty and says the speech she made in the first season finale inspired his killings, and as a ‘test’ for her, he has made a cypher that leads to the next act; a cypher that only Betty can solve.
Fearing the consequences of failing, Betty hides the letter from her parents and Sheriff Keller and only tells them about the cypher. Keller and Alice agree to help her, but not before Alice prints the letter in her paper.
Principal Weatherby calls Archie to his office and gives the boy an ultimatum. If Archie doesn’t deliver a written apology to Riverdale, then not only will Weatherby force the Red Circle and Bulldogs football team to disband, he will have Archie suspended ‘indefinitely’.
Archie delivers the ultimatum to the rest of the Red Circle as well as a plan to shake down the Southside for info on the Black Hood, but everyone walks out, leaving Archie and Dilton to their own devices.
Back at the Lodge apartment, Veronica confronts Hiram about inspiring Archie to create the Red Circle video. Hiram dodges the question, claiming he doesn’t remember any of his conversation with Archie. Veronica storms off.
At Southside High, Jughead and Toni are pouring over some books in an attempt to solve the Black Hood cypher. Jughead is so absorbed in the work he even ignores a call from Betty!
Uh-oh, watch out Bughead shippers!
Meanwhile, Veronica goes to Archie’s house to resolve their argument and announces she plans to help the Red Circle. Archie tells her there isn’t a Red Circle anymore and leaves to the Southside of town, where he purchases ammo, a gun holster and a Kevlar vest, which he claims is for ‘hunting’. Archie is adamant this is his fight but is blown away when he sees everyone in Riverdale High wearing Red Circle t-shirts.
Drunk on his victories, Archie goes to the Southside again and begins tagging walls with a Red Circle decal until he runs into Sweet Pea and his friends. Before the situation escalates, Archie brandishes his gun.
The thugs run off, but Archie is left shaken by the event.
Over at Jughead’s trailer, Betty has somehow convinced Kevin and Toni to come over and help her solve the Black Hood’s cypher. Things go reasonably well between them until Betty deduces that the Black Hood’s attack on Northsiders might mean he’s a Southsider. Toni considers this to be an attack against the Serpents and storms off, followed by Kevin.