Oliver and Thea are at Big Belly Burger, the Billionaire's Choice. Oliver's sad about the lack of Christmas Party. A guy named Shane comes in to tell Thea they're going to hang out on "the bay." Shane leaves. That was productive. Oliver asks, "How do you know that Shane guy?" because he finds him sketchy for some reason. Then he gets back to the "annual Christmas party." Well, says Thea, everyone was sad that Robert and Oliver vanished. So they stopped having Christmas.
Castle Queen. Oliver tells the family that they're having Christmas this year: "I thought that I would throw the Queen Christmas party." The general reaction is "You?" Yes, him. Moira says okay. Thea rolls her eyes and says, "Fine." Walter says he's a good man, and that flashes us back to the island.
The general also tells Oliver he's a good man. Then he starts delivering exposition: "Do you even know what this island really is? It's a prison." Really; until eight years ago, it was a Chinese penitentiary. And the general's unit came in and "disposed of all the inmates." Except for two, one of whom was the Chinese archer. And the other was Deathstroke (the guy in the silly mask who stuck a sword in Oliver during his interrogation). Apparently the archer slaughtered dozens of people. Which would be a more damning accusation if the general hadn't just admitted to slaughtering all the other inmates, you know?
Malcolm (still John Barrowman) tells Moira that Doug Miller told him that Walter asked him questions that suggested that he's seen The List. That's an elaborate sentence, but it mostly covers things that we saw happen. The point is that Doug could tell that Walter must have seen The List somewhere. Moira complains about Malcolm menacing her family, but Malcolm points out, "Your family won't stay away from me. Something must be done about it." He's considering bringing in their "associate." Ooh! They have an "associate!"
Somewhere! A jerk on a cellphone tells someone that he returned the money so he wouldn't get arrowed. Then he gets black-arrowed in the back. Once the police are there, we learn that he was Nelson Ravitch, who was targeted earlier by the hood. The commissioner says that if they announce that there's a hood copycat, then it will be a serial killer case, which will cause panic. Well, that doesn't hold up, given that Helena killed multiple people. And so did China White. And Deadshot. And Oliver, for that matter. So you'd think the local news wouldn't get excited at someone who killed only two people. The commissioner tells Detective Lance to catch at least one of these psychos. Lance says he won't blame the regular hood for this murder, and the commissioner overreacts: "You're off this case, sergeant. Effective immediately." So now he's been demoted from Detective Lance. That sort of thing happens pretty suddenly in television shows and movies, but I imagine that in the real world, even the police commissioner needs to fill out some paperwork to demote someone. And shouldn't he assign someone new to the hood investigation?