Not much happened. Another episode with Walter tripping and experiencing mind control issues. Animation was cool, but I am personally very tired already of the whole Walter's brain situation. It is being repeated and repeated and repeated. And I cannot care that much about this whiny Walter and his brains. He used to be a fun part of the show when there were scientific things to discover or play around. But not anymore. About the observer boy, it showed up in an episode from the first season, I believe, that's why he knows Olivia. I hope they will bring September somehow into the story at the end, because otherwise a LOT of people are going to be dissapointed :)
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