After Ryan nominates Sharon and Chelsia, the former DRs that she's doing what it takes to win. Which, oddly enough, will turn out to be following the surprising strategy of being a total nonentity in this episode. Joshuah says he's glad that Ryan stuck to their deal and didn't nominate him. Chelsia isn't happy about being on the block and on slop, and James feels bad about suggesting that Ryan nominate Chelsia. Oh, and of course there's lots of hugging.
Later, Sharon talks to Sheila and Joshuah (with Chelsia in the background) that she saw this coming: "Penises stick together," she says. ["Oh my God, ew." -- Miss Alli] Joshuah DRs that being a gay man is an advantage in this game, since the girls trust him and he can bond with the guys. But in the bedroom with the girls, he's clearly not thinking about much beyond the image placed in his head by Sharon's comment.
Ryan promises Joshuah in the HoH room that if the PoV gets used, he still won't nominate Joshuah, and they agree to spy for each other. Josh says he wants to trust Ryan, but he's worried about Ryan's allegiance to Matt. He adds that Sharon makes her a bigger target by being around Joshuah all the time. By that logic, Natalie should have gotten Matt booted sometime in Season Three.
In the storage room, Chelsia frets to James about people in the house not having her back. James assures her that he's looking out for her. Fortunately for him, lightning can't reach the storage room. Plus, now they'll have something else to talk about outside the house besides his past in gay porn.
A bunch of people hang in the HoH room, until Natalie gets tired of Matt picking on her nerves and leaves. She goes down to complain about it to Sheila and Sharon.
James and Joshuah get wind of this scene, so they decide to take advantage of it; specifically, they go and suggest to this little group that they convince Ryan to get rid of his good buddy Matt in exchange for two weeks of safety for Ryan. Which is quite devious, as long as someone wins and uses PoV. They all swear each other to secrecy.
Matt decides he may have been a bit too mean to Natalie, so he comes and makes up to her. She tells him that it's in his best interests to be nicer to her, and to prove it she tells Matt about the plan to boot him. "They say you treat me like shit and I don't deserve it and they want you out," she claims, which was more or less Joshuah's exact words, right? She and Matt agree to continue "pretending" not to like each other, to keep Matt's plan for revenge quiet. Matt DRs about how dumb it was to let Natalie in on the plan, when all it takes is a cuddle from Matt to get her to spill everything to him. Kind of having to agree with Matt here.
So Matt then goes to Ryan and tells them all about the other group's plan, and how they'll be able to totally play Natalie, using her to spy on the other side. "If I win HoH, it's gonna be a reign of terror," Matt promises.