This episode begins with Dan and Georgina hooking up. Blair walks in on them. Serena catches Dan walking out of Georgina's room. They then bump into Vanessa. Both Vanessa and Serena are concerned about Dan's relationship with Georgina.
Vanessa starts to realize that there is something off about Scott and does some investigation. She asks the admissions office to see if he is a student at NYU, and it turns out that he is not. Vanessa talks to Dan about this. Dan does some investigation of his own and warns Vanessa that Scott might be a danger to her. Vanessa confronts Scott, and Scott tells her the truth.
Blair receives a secret invitation to join "La Table Elitaire". In order to be initiated into this secret society, she has to buy a specific painting. Coincidentally, it is the same painting Chuck has to buy to seal a business deal. They go into a bidding war for this painting at an art auction, only to both be beat out by Serena. Chuck and Blair were too busy bickering and they both lost the painting. Serena discovered that the secret society was made up by Georgina to get at Blair. Serena gives the painting to Blair, who sweetly gives it to Chuck. Also in attendance at the auction is Scott's mom. Seeing her there made Scott unable to tell Rufus the truth.
Earlier in the episode, Carter was confronted in the street by a girl who claimed to have slept with him. He said he has never seen her before, but Serena was still skeptical. She still does not completely trust him. It turns out that it is a scheming Chuck and Blair that set this up, to ruin Carter's reputation in front of Serena. Serena, though, sides with Carter and gives him another chance.
Georgina overheard a conversation Vanessa had with Scott and finds out everything. She decides to follow him to Boston. She calls Dan, who listens to Serena's warnings about Georgina and backs off a little. Bree stops Carter on the street. There is a plot line developing there.