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Betty is about to tell Matt about her kiss with Henry when Penny Meadows, a Mode feature editor slips out her 28th floor windows and falls to her death in front of them. Daniel ends up offering her job to Betty and Wilhelmina offers it to Marc. They try to settle it by having a competition: whoever finishes the piece that Penny was working on and does a better job gets the job. When they break into Penny's old apartment to get her notes, her insulted twin sister throws away all notes. After persuasion from Amanda and some margaritas, the two decide to give up and tell Daniel and Willie they need to decide between them. They end up flipping a coin to decide betweeen the two and Betty wins.
Betty never tells Matt about the kiss and he gives her every opportunity to do so. When Matt asks Betty if she still loves Henry, Betty says yes that she always will, it's her first love. Matt breaks up with Betty, but says he'll continue to see her as her new boss at Mode. His father offered himt he job.
Justin was trying to get into Laguardia performing arts school in order to avoid Queens public school. He gets rejected, but Marc ends up having a bonding moment with Justin and tells him he's a product of public school and he'll be fine.
Wilhelmina, with her new knowledge of Clarie's baby with Cal, threatens to tell Cal if Claire doesn't resign. Claire ends up telling Cal herself. Cal and Claire end up telling Wilhelmina they're rethinking her position. Wilhelmina hires a bounty hunter to go retrieve Conner and his money so she can get the money to push Cal and Claire out. Claire, meanwhile, burns some adoption papers. Apparently she never actually aborted the pregnancy.
It's the MAMA awards and Daniel and Wilhelmina are nominated as editors in Chief for their wedding issue of Mode. Molly is unable to attend the ceremony but convinces Daniel to go in case he wins... she says she'll meet up after a nap. Daniel goes, sees Molly arrive, gives a great speech and thanks her. Then Molly disappears and apparently was in his head. He heads home to find her being taken by the ambulence in a body bag. Very sad.