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With Griffin Conroy in the hospital, his hand re-attached by surgeons but still rambling about nonsense and "Chloe," Peggy Haplin pretty much makes Tommy take over as sheriff. She and her money run the town.
He feels overwhelmed, but gets a call from the lab that says the baking powder found on the victim contained NYC tap water. Big Dave's Pizza uses that in its dough. Tommy goes over to his best friend's place and finds a hidden room on the basement with photos and clippings from the Haplin kidnappings. Dave comes in and admits it: he killed Jerry Friddle because he thought he was the Magic Man and no one was doing anything about it.
But Tommy flips out, telling Dave Jerry had an alibi for many of the kidnappings and that he got it wrong. Tommy, however, also makes it sound like he'll protect his friend.
Elsewhere, Georgia gets drugged at the hospital. A man puts creamer in her coffee and she somehow ends up in the living room of the Stiviletto brothers. It was a very long, weird scene. Turns out, the guy who talked with Georgia at the hospital and gave her the creamer is the new state agent that is in town to help Tommy with the case. We learn this at the end of the episode.
Also, Henley makes a copy of the key to the third floor of the house and breaks in. There are many birds in cages there and she steals a hammer with some sort of animal head. She then buys a used car and is driving out of town when another bird (a crow, I think) flies into her window, purposely it seems, and causes her to crash badly. That's how the episode concludes.