This one starts where last episode left off, right after Aaron’s acquittal on all charges. Veronica’s cynicism kicks into overdrive and she concludes that life sucks, the universe is random, and assholes always prosper. Keith tells her not to obsess and that Aaron will get what’s coming to him sooner or later. He reminds her they have a business to run, but he’s pretty shaken by the verdict too. Veronica gets a fax about Meg’s father offering $20,000 for the capture of Woody Goodman and Veronica thinks Keith should go for it. Keith is more interested in seeing Veronica graduate. At the coffee shop, Veronica consoles Wallace after Jackie’s abrupt departure for Paris last episode. She quizzes one of the members of Woody’s old baseball team, trying to identify all the kids in the team photo. When she gets home, there’s a call from sleazy detective Vinnie Van Lowe, who has a proposition for Keith.
Seems Vinnie got caught breaking into Woody’s house and he wants Keith to get him out of jail. In exchange, he’ll share all the info (financial, corporate, tax records) he got from Woody’s place and they can split the reward. Keith agrees, but says they can’t do anything until after Veronica’s graduation. Keith and Veronica go through the records and find out some interesting stuff. First of all, Woody was treated for chlamydia, which gets Veronica’s attention. Second, Woody needs to take medication every day, so Keith comes up with a way to determine where he’s hiding. Keith figures Woody’s lawyer (who’s an old college friend) might take a call from Woody’s daughter and asks Veronica to get Gia’s cell phone code.
That night, Veronica has a weird dream about how her life might’ve been if Lilly hadn’t been killed. Her mom’s still at home, her dad’s still sheriff, she’s going to attend San Diego State University. At school, she’s still part of the popular crowd (though she’s dating Logan instead of Duncan) and isn’t friends with Wallace. They do have a brief encounter, which is at bit strange because in this dream, Veronica doesn’t hate high school and look forward to leaving. She runs into Lilly (who’s going to Vassar and is apparently bisexual), but the dream shatters when Lilly reads the dedication on her own memorial sculpture. Veronica awakens to the smell of bacon and her dad says breakfast is ready.
Later that morning, Keith and Veronica trick Woody’s lawyer into calling Gia (actually Veronica pretending to be Gia) and getting him to leave a message for Woody. Keith traces that call to a hunting lodge outside of Reno where Woody is staying in the name of Underhill; I guess he’s a Tolkien fan. At school, Keith tells Veronica he’s heading for Nevada right after graduation. Veronica notices Weevil’s grandma in the audience; Weevil promised her he’d graduate for her sake, so she’s there to see it. Unfortunately, Sheriff Lamb shows up during the graduation to arrest Weevil for killing Thumper and drags him out in front of everyone. Mac tells Veronica that Beaver rented a hotel room for them, so I guess he’s finally ready to bang her.
Veronica’s name is called and she gets her diploma. Principal Clemmons and Veronica have a nice moment (and she advises him not to tape all his passwords to the bottom of his stapler). Keith gets tickets to New York as a graduation present and takes off to go find Woody. Wallace also takes off (leaving his mom a note), heading to Paris to track Jackie down. Too bad she’s not actually in Paris. Yeah, Jackie was bullshitting about her mom being a supermodel and living the high life in New York. Her mom is a waitress in Brooklyn who got knocked up by Terrence. Jackie was a wild girl (she had a kid of her own at sixteen) so her mom sent her to live with Terrence and said she’d raise Jackie’s daughter. Now Jackie’s back in Brooklyn, working at the same diner as her mom and trying to take care of her kid.
Of course, Veronica knew Jackie was lying; her kick-ass waitressing skills and average grades told Veronica Jackie wasn’t Sorbonne material. Veronica calls Jackie to tell her about Wallace going to Paris to look for her and mentions he has a layover in New York, so Jackie can find him and tell him the truth. At the hotel, Logan runs into Aaron, who points out that he got all his assets back since his acquittal, so Logan better be nice to him. In Nevada, Keith bags Woody and calls the cops. Woody insists he didn’t blow up the bus, but doesn’t deny molesting boys on his baseball team. He tries to justify it, but Keith doesn’t want to hear it. Keith calls Veronica to let her know what happened. She’s still trying to identify everyone in the baseball team photo, but there’s one guy whose name she hasn’t figured out yet. Keith is flying back with the cops on Woody’s plane and tells Veronica not to wait up.
Veronica goes to one of Woody’s restaurants to study the photos on display. She gets the name of the last kid, but finds out something disturbing: Beaver was on the team too, but wasn’t there for the photo. Veronica calls Mac to warn her about Beaver, but she’s at the grad party and misses the call. Beaver suggests they head up to the hotel room and Mac agrees. They run into Corny on the way, who tells them about Keith catching Woody. Veronica gets to the hotel, still calling Mac, but Mac and Beaver are already in bed. Veronica asks Logan where Beaver is and he knows something’s wrong. Beaver and Mac’s coitus got interrupted because Beaver couldn’t get it up. Mac is very understanding, but Beaver’s pretty bummed out. He should’ve gone down on her, but maybe that’s too advanced.
When the desk clerk won’t tell her what room Beaver’s in, Veronica sends a text to warn Mac. But Mac’s in the shower (probably masturbating) and Beaver sees the text. He texts back on Mac’s phone for Veronica to go to the roof, then he pulls a gun out of his overnight bag. Veronica runs into Aaron in the elevator and he basically confesses to killing Lilly, knowing there’s nothing she can do. On the roof, Beaver surprises Veronica with his gun, taking her bag and removing the stun gun. We get a big load of exposition as Veronica lays out everything that happened.
Beaver played on Woody’s little League team and was molested, along with Marcos and Peter. When the others wanted to come forward and put Woody away, Beaver was afraid everyone would blame him (or make fun of him), so he blew up the bus to keep Peter and Marcos quiet. Beaver got the explosives from Curly Moran and blew the bus from the limo. Curly figured it out, so Beaver convinced the bikers Curly blew the bus and finished Curly off when Weevil wouldn’t. Beaver wrote Veronica’s name on Curly’s hand to confuse things and used Veronica to bring his father down. Veronica also knows Beaver raped her at Shelly’s party, which is how she got chlamydia.
Beaver says once Veronica’s dead, she can’t tell anyone all this, but she says she already told her father who’s coming back on Woody’s plane. That works out well for Beaver, since he planted a bomb on the plane just like the one he put in Woody’s car. Beaver lets Veronica call her dad to say goodbye, but he doesn’t answer. Beaver blows the plane with his cell and they see the explosion in the sky over Neptune. Veronica freaks and Beaver points out how she has nothing left to live for. He asks her to jump off the roof to save him getting her DNA on him. As she’s crying over her dad, she texts Logan to come to the roof.
Beaver zaps her with the stun gun a couple times, but it doesn’t knock her out … maybe because he zapped her through her jacket. Logan shows up and Beaver takes a couple shots at him. Veronica tries to jump Beaver and gets knocked away, then Logan jumps him and gets zapped. Veronica finally grabs the gun and is ready to blow Beaver away for killing her dad. Logan talks her out of it, saying she’s no killer. Beaver jumps off the roof, killing himself. They find Mac in the hotel room; Beaver stole her clothes, so she’s wrapped in a sheet. She’s pretty freaked out, but I don’t think he hurt her … at least, not physically.
In another room at the hotel, Aaron is plowing Kendall. When she goes to take a shower, someone slips into the room with a silenced pistol and puts two bullets in Aron’s head. It turns out to be Clarence Weidman, former head of security for Kane Software. Weidman calls Duncan in Australia and tells him “it’s a done deal”. In New York, Jackie finds Wallace at the airport and tells him the truth. Jackie realized being mad at her dad for freezing her out was hypocritical since she wasn’t even raising her own kid. She tells him she has to stay in New York and take care of her son.
At home, Veronica has another dream and wakes to the smell of bacon again. At first, she thinks it’s Keith but it turns out to be Logan, who spent the night on the couch. She loses it again and Logan comforts her, but Keith actually does come out of his room, woken by the smell of bacon. Veronica is ecstatic and Keith says Lamb had him taken off the plane at the last second so Lamb could meet the plane in Neptune and hog all the glory. Keith rented a car and drove back. Logan leaves them to their reunion. Downtown, Kendall learns that she’s inherited eight million bucks from Phoenix Land Trust. A few days later, Keith and Veronica prepare for their trip to New York. We find out Veronica and Logan are dating again and he shows up to take her to the airport. Kendall drops by to hire Keith for some special assignment. He tells her it’ll have to wait, but she opens a briefcase (full of cash, I assume) and that gets his attention. At the airport, Veronica waits for her flight and wonders where Keith is. And that’s it for season two; next week we start season three and Veronica goes to college.