Cut back to Lan asking where Chloe is. Derek says she's upstairs resting. Why all the secrecy when she asked the same question earlier? Lan can't believe they left without any proof of the Desert Squid. Derek says their proof will be the video, which Lan promises is almost ready. Outside, we see a tentacle crawling up the window. Tentacles are creepy.
Chloe comes downstairs with a huge red scrape (including sucker marks) on her neck. Everyone comforts her, especially Derek. Chloe has been doing some research on De Santo. Apparently, twenty years ago De Santo applied for a bunch of patents in the area of "cell regeneration" and "Wall Street thought they were onto something big," but then suddenly De Santo just dropped what they were doing. The computer beeps to indicate that the video is ready, and they all gather around to watch it. Elsing talks about "Test Subject 148" whom Derek identifies as One-Armed Guy from the diner. Before the gang can figure out what they are seeing in the video, the power goes out. Chloe thinks it might be the storm, Jason thinks it's something else, and in a nice bit of continuity, Lan notes that it "took out the backup power too." Derek volunteers to go start up the generator. Once Derek is conveniently alone, Elsing shows up to tell him that he "screwed around with the forces of nature" and went too far, but now he can't get back, and neither can Derek. Derek hears glass breaking and turns away, and when he looks back, Elsing is gone.
The glass broke when the men in black broke into the house. They say they are going to take "the hard drives and all the tapes." Derek tells them that everything has already been posted to the website, but head man in black says he knows that's not true. Other man in black takes out a gun, which causes the gang to put their hands in the air (but not to wave them like they just don't care.) Just then, a tentacle busts in the door and takes out the guy with the gun. Jason punches the head man in black, but not very well. Just as the head man in black is fixing up his gun, he is also grabbed by a tentacle and dragged away. After ascertaining that Jason is okay, the gang look outside to try to figure out what's going on.
A door opens and a tentacle waves in, followed by One-Armed Guy, who turns out to be One-Arm-and-One-Tentacle Guy. The tentacle is attached to him. He gives the Freakylinks gang a speech about how he was dumped in the desert twenty years ago and woke up to find the tentacle attached. Now, just when he gets his diner going, the Freakylinks gang shows up and his diner gets "blown to hell." In other words, if it hadn't been for those meddling kids...well, you get the picture. Turns out that all One-Armed Guy wants is his dog back. Derek can't believe he came all the way there for his dog, and Chloe points out that he almost killed her. He apologizes -- he thought she was his dog. One-Armed Guy asks them to write the Desert Squid story on the website because he'll need the publicity for his new diner. He admits to being responsible for the cattle mutilations, and using the cattle for hamburgers for his diner. One-Armed Guy takes the De Santo videotape and leaves, taking the men in black with him. Lan asks rhetorically what he's going to do with the men.