Chanel notices her window open and moves to close it. Suddenly, there is screaming from downstairs: Chanel #3 and Chanel #5 have discovered Chanel #2's dead body.

Chanel immediately assumes that Ms. B is back from the dead and killing them off one by one in revenge. Chanel #3 says that that's an insane conclusion to jump to. Chanel refuses to allow them to call the police. The doorbell rings, and they table the discussion of what to do with #2's body, as KKT Hell Week hazing has begun.

Chanel tells the pledges that they're about to get hazed. Grace and Zayday stand up to Chanel, saying that they won't allow anyone to get hazed, and that the new KKT is about sisterhood. Chanel invites Grace to join her for a private coffee meeting just the two of them to hash things out.

Chanel brings Grace to the coffee house, where she gives her a pumpkin spice latte and tells Grace that she can't stand her but that Grace reminds Chanel of a young version of herself. She invites Grace to be Chanel #6. Grace refuses, pointing out that Chanel is miserable.

Chanel tells Grace that Grace is the only person at their school nearly as smart as she (Chanel) is. Grace asks why she's so awful. Chanel spouts off that her parents neglect her, her boyfriend cheats on her, and all her friends work for her. Grace tries to encourage her to turn over a new leaf for herself and the sorority. Chanel quickly dismisses that idea. Grace insults her and storms out.

Chanel #3 and #5 leave the pledges (minus Grace) to experience the "sexy gopher whore head challenge," in which they're all buried neck deep on the lawn (with only their heads above ground) and left to "get to know one another" overnight.

Hours later, Zayday awakens on the lawn to hear what she thinks are "killer noises." The Red Devil revs up a lawn mower. As they all scream in fear (and deaf Tiffany mistakes their screams for singing Taylor Swift) the Red Devil runs over Tiffany's head, beheading her.

The Dean contemplates a time past when deans had "real power" and were able to cover up murders. News vans swarm the campus as news of the murder spreads. The phrase "serial killer" is tossed around. Dean Munsch marches through the onslaught of reporters and enters KKT.

The Dean introduces the assembled KKT sisters and pledges to a detective, who will be questioning them about the beheading. The Dean tells them that at this point they are all suspects, though Chanel tries to deflect suspicion onto the missing Ms. Bean and Chanel #2. Grace tries to insist that they can't keep them prisoner on campus, but the Dean says that none of them will be excused for their classes -- meaning that if they don't stay, they'll fail out of college, Gigi, despite Grace's pleading, backs up the Dean.

Grace declares to the group that they'll all need to move into the house for their protection. Chanel #5 is appalled at the idea, but Chanel agrees that they need to close ranks and says she'll hire security.

Chanel, #3 and #5 return upstairs to look over #2's body and discuss what to do with the corpse prior to the security guard's arrival. Chanel shoots down all of their ideas.

Hester suddenly appears and interrupts them, saying she knows what to do. She tells them that she's been obsessed with death since she kissed her dad's dead body at his funeral. She voices a very intricate, gruesome plan for disfiguring the body to make it unrecognizable and breaking it down methodically to dispose of it. Chanel is horrified by the plan and shuts Hester down, telling her they'll store the body in the meat locker until they can figure out another plan.

In the meat locker, Hester continues to creep Chanel and the minions out with her ideas about how to treat the body so it won't haunt their dreams and take them with her. She asks to call all the collective Chanels mom, and Chanel agrees to it in order to get Hester to shut up. They close up the meat locker and leave Chanel #2's body there.

Gigi introduces the KKT sisters to their security guard, Officer Denise Hemphill, who she found in the Yellow Pages. Hemphill tries to reassure them she'll keep them safe, though she points out she isn't authorized to carry a firearm. Chanel criticizes how effective she'll be without a gun. Hemphill insists that they won't need police with her around. She tells the girls of the three-step, ineffective process to ensure their protection at her hands.

The Chanels order the pledges to scrub the floors. Chanel criticizes Zayday's lack of soap, and Zayday retorts that maybe Chanel shouldn't have burned the maid's face off. To diffuse the situation, Grace offers to go get more soap.

She goes into the basement to find the soap, where the Red Devil is watching from the shadows. Grace accidentally pulls a large shelving unit down on top of her, uncovering a secret door in the process. Chanel #5 sneaks up on Grace as she's trying to get the door open, telling Grace that only Chanel has the key to that door and ordering Grace upstairs. 

Grace goes to Pete's room and they discuss the secret hidden door. They talk over the rumors of the house being haunted or something really bad having happened there. They simultaneously realize they'll need to break into the school's records to find out more. They kiss for a few moments before stopping abruptly. Pete tries to continue the kissing, while Grace insists they stop until they figure out what's going on. As she leaves, Pete tells her to be careful since he wants to kiss her again.

The Dean and Grace's father discuss his proposal to shut down the campus for a week. The Dean tries to convince him that the best thing for Grace is for her to stay on campus, at Kappa house, and offers a very specific scenario of a cannibal serial killer targeting only KKT sisters. She assures him that there is not a serial killer, and even if there were, Grace would not be a target, insinuating that she can guarantee it. She brings up that he is a widower and makes romantic moves on him. Grace's dad asks that the Dean give him a job as a professor on campus so he can stay close to Grace, mentioning he'll do anything to keep her safe.

Grace pokes around the basement, looking for evidence. She finds an old CD from KKT, with "Waterfalls" on it. Chanel sneaks up on Grace, telling her that the basement is where Kappa keeps its darkest secrets. Chanel tells Grace the story of the girl who bled to death after giving birth, while her friends partied, in 1995.

Chanel tells Grace about how the KKT sisters covered it up, fading into a flashback to 1995. Apparently a younger Dean Munsch covered it up, after being informed of the death by a younger Ms. B. Grace suggests that maybe the death and cover-up are related to what's going on now. Chanel scoffs at that idea, mentioning that you don't need to go back 20 years to find someone with a grudge against KKT. Chanel leaves and Grace wonders what happened to the dead girl's baby.

At KKT, Chanel and Chad are having sex, with Chad continuing to make references to his vague necrophilia. Chanel stops him, telling him to leave because he isn't being supportive. Chad expresses disbelief that Chanel is breaking up with him, and tells her that she'll be sorry before leaving. Chad returns to his dorm room that he shares with Boone, where Boone reassures him that Chanel will regret breaking up with Chad and come crawling back to him. Boone then requests to crawl into bed with Chad. Chad casually reminds him of the time when Boone climbed into bed with him in the past and then tried to touch him sexually. Boone promises he won't do that again and then Chad agrees to allow Boone to crawl in bed with him.

Chanel goes to Chad's frat house, where she walks in on Boone and Chad (platonically) in bed together. She storms out and accuses Chad of being gay. Chad says he's not, though acknowledges that Boone is, and tells her that he is just so hot that everyone wants to have sex with him. Chanel says she regretted what she said and wanted to apologize. Chad accepts her apology and then breaks up with her, calling her a spoiled, homophobic little girl.

Pete breaks into the school records room. Where he finds a file on the 1995 Kappa house party. In the file, he finds a sheet with five names on it: Greenwell, Doyle, Meyer, Cohen and Stevens. He jots down the names but then gets knocked out by the Red Devil. The next day, Pete awakens strung up to a pillar with a note on him saying MYOB (for "mind your own business").

Later that day, Pete and Grace debrief on what they found out. Pete tells her about the names he found, and Grace tells him about the story of the girl who died. Grace finds the Red Devil costume in Pete's closet and accuses him of being the killer, since she knows that is the disguise the killer wears. Pete insists that it is just the mascot's uniform. She asks how old he is, and he tells her he's 19, to turn 20 next month. She tells him that that's exactly how old the dead Kappa pledge's baby would be if it grew up. She storms off and Pete eerily smiles down at the Red Devil mask.

Chanel, #3 and #5 drink lattes in the cafe. They're approached by Boone, who tells them that he knows Chanel wants to out him as gay and destroy his reputation, forcing him out of Kappa house. He instead wants to come out on his own and join Kappa house. Chanels #3 and #5 scoff at the idea, but Chanel decides that they are doing it. Chanel says that being the president of the first sorority to admit "a gay," will get her far in her anticipated career in media with her gay viewers and gay men in the industry. Chanel #5 flips out and threatens Boone, who seems unfazed and walks away saying he trusts Chanel will consider his offer.

Hemphill, stationed outside KKT, is distracted by her fellow security guard friend Shondelle joining her in the car. The girls in Kappa house stand looking out the window, where Gigi notices another person in a car. Grace tells them that it's her dad and Gigi offers to go out to give him peace of mind.

Gigi blurts out to Grace's dad that he is very attractive. She listens to his concerns about her safety and his worries that Grace is pulling away from him. Gigi and Wes bond over their love of power ballads of the 90s, and go to get a coffee. As they pull away, the Dean is revealed to be watching them menacingly.

The KKT sisters continue hazing the pledges. Chanel steps away to get white eyeliner to write on Zayday.

Hemphill hears screaming coming from the house and runs in, leaving her friend Shondelle asleep in the car. Chanel runs down and recounts being attacked by the Red Devil killer and narrowly escaping. The girls decide to go back upstairs to catch the killer, while Hemphill calls them crazy for doing so and elects to remain upstairs. The girls find "Sluts will die" written in red above a closet door, but the killer is nowhere to be found.

Back outside, Hemphill rushes back to her car, where Shondelle has been stabbed to death by the Red Devil after he snuck into the back of Hemphill's car. Hemphill drives away frantically, screaming, pausing only to shove Shondelle's body from the car.

Boone works out and is interrupted by the Red Devil. He is unimpressed and not scared by the figure. His fraternity brothers, the other Dollar Scholars, later find him dead and laid out on a table. They scream in terror.

At a dinner celebrating the end of hell week, Chanel tries to get the pledges to drink her dirty hand-wash water soup. Zayday calls for an end to the gross hazing and brings up the murders. She tells Chanel that she's her prime suspect since they all say her kill Ms. Bean. Chanel denies actually killing the woman, and again reiterates that Ms. B, with a burnt-off face, is running around murdering people. Zayday brings up Melanie Dorkess' disfigurement.

Chad and Hemphill run in, both having announcements to make. Hemphill tells them about her friend Shondelle having been murdered and that the body is missing. Chad tells Chanel that he had sex with 50 girls since their breakup, and that Boone is dead. Chanel sits down, in shock.

At the morgue, the Red Devil opens up a drawer with Boone in it. Boone suddenly awakens, revealed to be alive. Boone peels off the fake cut on his neck and asks the Red Devil what took him/her so long.