Theo meets with 9-year-old Kelsey, who is claiming to see a man named Mr. Smiley who is haunting her. 

In flashbacks, Theo is shown to be a keen observer. One night she finds Luke in the dumbwaiter and she agrees to help him take a quick ride. When he goes down instead of up, Luke is confronted with a mysterious figure that rips his pajamas and leaves Theo distraught. She later decides to investigate the house to prove that Luke was right about the basement. 

Olivia later tells her that her grandmother, as well as she, have been gifted with the ability to see things by touch and she gives her gloves to protect her from the thoughts. 

In the present day, Theo goes to Kelsey's foster families house and is able to sense that Kelsey's foster father is molesting her and she has buried it so deep that she created Mr. Smiley. 

Theo goes to see Nell's body and touches her head causing her to cry out in agony.