Contains spoilers for this episode and earlier episodes.
Ray and Nikki record a sex tape with Ray disguised as Emmit and demand $100,000 to keep it from Stella. Stella sees it first and leaves Emmit with their family. Ray also proposes to Nikki, who accepts. When Sy tells Nikki the original threat is worthless, she changes her price: $200,000 to explain to Stella that the man in the recording is Ray.
Varga humiliates Sy for speaking to Winnie, urinating in his mug and making him drink from it. Sy meets Ruby Goldfarb about a possible company sale, but Emmit calls him away to deal with the tape. Emmit blames Sy for failing to stop Ray and gives him permission to act more forcefully. Varga separately suggests that Sy might be conspiring with Ray, encouraging Emmit to distrust his partner.
Gloria and Winnie question Ray about Maurice and the Stussy connection, but Chief Dammik orders his release. IRS agent Larue Dollard visits Emmit about the $10,000 withdrawal, alarming Varga. Sy meets Nikki in an empty parking lot and offers $40,000 for the couple to leave the state. She insists on the larger sum and the stamp. Yuri and Meemo interrupt the negotiations, challenge Sy's actions and brutally beat Nikki while he watches. Nikki drives home injured, where Ray finds her collapsed in the bathtub.