Outside, Arizona is crying and Callie immediately begins to apologize, and begs her to stop crying. Arizona finally forms words to tell her that Wallace died on what was supposed to be his 11th birthday, and Callie can only stutter at the absolute horror of the situation and her wretched party timing. Arizona cries that she can't stay, and Callie assures her that it's okay, and that everyone will understand; with that Arizona leaves.
Lexie helps clean up as people leave -- or rather, most people leave, since Avery is going to take advantage of the free booze. Lexie watches him with some disdain and then turns to Mark, disappointed. She gives him permission to gloat, but he thinks the party speaks for itself. Lexie complains that the best party she ever had was a surprise party thrown by her parents, so how could this go so wrong? Well, as it turns out, that party was when she was 7. Between Callie's uber-poor decision making in having the party in the first place, and Lexie thinking it was a good idea after something that happened when she was 7, it's a pretty low point for ladies that are usually much smarter than that.
The Andersons are packing up Wallace's room in the company of Richard and Jennings, and Jennings is dancing around like an excited Chihuahua, offering to oversee the packing or do anything else they might need. Right now he's the Pete Campbell of this situation in that he clearly has no idea how to be a real boy and read the room. Arizona then walks in, and when Jennings tries to run her out, Richard orders him to let her be. Jennings is surprised that Richard has stood up to him but Richard stands his ground -- the correct ground -- for once. Jennings is clearly terrified about what might happen, but Arizona just walks up to Mrs. Anderson, who admits that it doesn't feel real. Mr. Anderson doesn't say a word, but just looks at her, and Arizona gently asks if they would like to see him. Trying not to crumble, Mrs. A. nods.
Reed sees Alex sleeping again, so of course that's a perfect time to make conversation. Also unable to say the right thing, she tells him she's impressed as she wouldn't have pegged him for a babysitter. She asks if he's going home, and when he says no she chirps that she's sure someone else can take his shift. This is just painful to watch. Girlfriend, if you want to score points with him you need to at least be able to tell that he wants to stay there and work with that from the beginning. Alex, of course, yells that he can't leave, and so she shoots back, wondering if he is so messed up he can't let someone be nice. He might be, but what she said really wasn't the right thing either. Alex, though, actually softens a tiny bit and admits, somewhat defeated, that he has no idea if Izzie is even alive, and he's got her $200,000 (!!) medical bill, and he can't do anything about those things but he can sit and hold the baby. Reed finally gets it, and tells him that then she'll stay with him, and pulls up a stool.