Dominic has a quiet conversation with Shelly in which the newbies have been downgraded to "stragglers," but he says she's the only one he trusts. Which is awesome, considering she was one of the two people who flipped on the newbie alliance in Week One and handed the whole game to the veterans in the first place. He thinks it's a good idea to shore up his numbers for the eventual vote, so he lays out a whole scenario for Shelly in which the newbies can take control of the house from the veterans by getting rid of Jeff and Brendon. Of course, Dominic doesn't realize that Shelly trusts Jeff and Jordan. If only Shelly's loyalty could have been signaled to Dominic at some point, like say for example by how Jordan invited her to the luxury party this week.
Sure enough, Shelly goes right to Jordan the next morning to tell her all about Dominic's conversation with her. Jordan somehow realizes there's a whole other alliance being built, with Daniele as the leader. So now, things Jordan knows include the fact that Dominic wants them out and is working with Daniele. "And I go right upstairs to the HoH room to tell Brendon and Rachel," she DRs.
Jordan brings Shelly up with her, and Brendon (his eye in a patch, just to see how bad the vision in one of his eyes is, because that's what the level of boredom in this house does to people). Jordan starts by mentioning the Veto. Brendon and Rachel are noncommittal about whether they're using it, and Jordan gives the floor to Shelly, who tells them all about what Dominic said to her the previous night -- namely Dominic trying to draft Shelly to join him and Daniele. Rachel is shocked at his "audacity," because the only people allowed to play the game in this house are her and Brendon, and sometimes not Brendon. They kick Shelly out so no one suspects she's ratted anyone out, and so Brendon, Rachel, and Jordan can talk about what this means. Which is, obviously, nothing good for Dominic and Daniele. For now, they agree to just pretend they don't know any of this. Jordan leaves the room, and Brendon and Rachel talk about Daniele turning on them... though with a notable lack of shock.
Jeff visits Brendon in the HoH room, and Brendon updates him on what's been going on with Daniele, including her push to backdoor Jeff and Jordan. Jeff DRs that as soon as he gets rid of Dominic, Daniele's next. He remarks to Brendon that Daniele thought she had it all figured out, but "she fucked up." Actually Dominic did, by letting Shelly in on the plan, but whatever. The blame is also Daniele's for putting all her eggs in one 25-year-old virgin basket. Brendon and Jeff make a pact on the spot to boot Daniele as soon as possible and go for the final four together. Okay, so maybe I was wrong about the endgame featuring five veterans and zero newbies, but that's Dominic and Daniele's fault, not mine.