Maine, 28 Years Ago, Day. Magic blows a hole through the trunk of a big tree. Inside is Pinocchio. He hops out and takes a look around. In a lovely visual callback to Lost, a plane flies overhead. Of course Pinocchio is from the Enchanted Forest, so he cowers in terror. When he tries to climb back in the tree, magic knocks him unconscious, so unlike us, he doesn't have to suffer through a flashback of the last scene between him and Geppetto, you know -- the one we just saw a few minutes ago. When Pino regains consciousness, he rises to his feet. Magic whooshes all around him. When it's gone, a squalling Emma is in the tree. Pino takes her out and tries to hush her cries.
Maine Woods, Night. Emma says August can't be the guy who found her, because she wasn't found in the woods -- she was found on the side of the highway. August says he lied about where he found her. Emma says he's lying to her about everything. She says she's done listening and starts to walk off, so August tells her about the blanket she was wrapped in when he found her. Emma gives him a chance to explain why he lied about where he found her. August: "I lied to protect you." Emma: "From what?" August points at the tree and says, "That." He knows she's read Henry's book and knows about the curse and her role in it. He tells her he's Pinocchio and that they both came into this world through the tree. She laughs at the liar claiming to be Pinocchio, but of course he's telling the truth. She realizes he's the one who added the story to Henry's book and notes he's not a very good liar, since he didn't even bother to finish the story he added. August: "This is the ending and we're writing it, right now." Emma: "And how does this story end?" August: "With you believing." Emma tells him that's not going to happen.
This time when Emma storms off, August chases after he. He soon falls and moans in pain. Emma asks what's wrong with his leg. August says he failed and that it doesn't matter, because she doesn't believe. He's not screwing around here. Whether or not she believes, this is real and he is sick. Emma agrees he's sick -- a sick crazy lying liar who lies. August wants to shout out to the Lost fans too, so he asks Emma if she's ever been to Phuket. That's where he was she decided to stay in Storybrooke. Emma asks how he knows when she decided to stay. August isn't done with the Lost easter eggs so he says, "Because at 8:15 in the morning, I woke up with a shooting pain in my leg. That's 8:15 at night, in Storybrooke. Sound familiar? That's when time there started to move forward again. I was supposed to be there for you and I wasn't. Because I was halfway around the world, I got a painful reminder of how far I'd strayed. If that tree won't make you believe, maybe this will." He pulls up his pant leg to reveal his wooden leg. He sees it. I see it. You see it. We all see it, except for Emma. She sees an ordinary hairy, pasty white leg and asks how that proves anything. August realizes her denial is powerful. "It's preventing you from seeing the truth. [...] You don't want to believe -- after everything you've seen, why can't you just do it." Emma asks why it's so important to him. August says everyone needs her to. Emma's in tears, now. "I don't want them to need me. [...] You're saying that I am responsible for everyone's happiness. That is crap. I didn't ask for that. I don't want it." August counters that she didn't want Henry at first either and now she's fighting like hell for him. Fighting for Henry is all she can handle right now. She wants nothing to do with this. When August tells her she's their only hope, Emma says, "Then you're all screwed."