Veronica investigates when a blackmailer threatens to out gay students at Neptune unless they each pay $5000. Meanwhile, Keith learns that Terrance was at a casino on the day of the bus crash and couldn't have made the call that triggered the explosion, but Sheriff Lamb doesn't buy the alibi. Also, Dr. Griffith discovers that his daughter, Hannah, is dating Logan; and Veronica finds some shocking evidence in an airplane hanger that could implicate someone in the bus crash.