We're back in Dr. Thredson's office, where he's now handing out terrible, but well-intentioned psychiatric advice and offering to bend the rules in a really self-serving way for his second patient in 20 minutes. He tells Kit all about the bind he's in -- you guys, it's really hard to be Ollie Thredson right now. I'm sure Kit's totally interested in hearing about his internal anguish. Anyway, Thredson's dilemma is that he can either declare Kit sane -- which he knows he is -- and have him sent to the electric chair or else lie and say Kit's crazy, allowing him to live out his life in the hell of Briarcliff, but at least its living. Thredson's theory about Kit goes that Kit was so fucked up by society's refusal to accept his interracial relationship that he ultimately snapped and performed the killings in a way where he was not responsible for what he was doing and then concocted a delusion about aliens so he wouldn't have to face what he'd done. Thredson doesn't think Kit's execution would serve any "moral purpose," so he's prepared to lie to the courts and say Kit's crazy, on one condition: that for the rest of their time here, Kit will face up to what he's done. "That way, I can leave here feeling as if I've done some good," Thredson says. Because GOD FORBID this story ends without Ollie Thredson feeling super peachy about himself and his savior complex. "I already told you what happened," Kit says meekly. "Yes," says Thredson. "Now let me tell you."

So it's Story Time all over Briarcliff, it seems. Anne Frank is still telling hers to Sister Jude. She says Arden wasn't called Arden back then -- "His name was Gruper. Hans Gruper." Okay, first of all... I can't even begin to deal. LMAO 4 dayz. Second of all, super-excited to find out next week that Monsignor Howard's given name is Schmannibal Hector. Anyway. So we get black-and-white footage from Auschwitz, of course, because that's the kind of material that (perfectly wonderful) trash-pop TV should be tackling. The lookalike actor they got to play young James Cromwell is spookily accurate, by the way. Anne says her first impressions of Gruper were that he was kind and gentle -- she saw him "save" twin boys from being herded away by the SS. She thought they were lucky. But the truth was, Gruper never "saved" anyone. He would visit the girls' quarters, handing out sweets, saying he wanted to help. He couldn't treat all the girls, so he'd flip a coin to see who would come with him. But when/if they came back, something had changed; he'd made them sick. We see these girls back in the cells, sobbing.