Grayson Manor. Queen Victoria and all her lady friends have been assembled by Ashley to discuss the Memorial Day party which, according to Ashley, is already at ninety percent capacity and has raised over $50,000 from various causes. But $50,000 isn't enough for Victoria Grayson -- oh no. She has decided she will be auctioning off something from her personal art collection to try and make a bigger splash. We finally meet Lydia Davis who raises her voice to let Victoria know she will just die if she auctions off the Van Gogh that the Davis' gifted the Graysons. There's no chance of that, as that painting is off limits for sentimental reasons, Victoria coos to Lydia. With that settled, one of the other women speaks up to Lydia in front of everyone that she was so sorry to hear about Lydia's marital problems. Lydia slinks off to the side and seems to be more worried when she's consoled by Victoria about a threat from Michael that he'll put up their beach house for sale if she doesn't release her claim on their west side walk-up. She's worried one of the "she-wolves" will snatch it up if that happens. Victoria's advice to prevent this is to not show any weakness.
Amanda walks out to the water of the beach behind her house and lets her feet get washed in the waves. She stares out at the ocean. FLASHBACK: She's little Amanda again, standing in the water with her dad, who teaches her that if she just stands still, each wave will feel warmer. /FLASHBACK. Lydia happens to come down to this part of the beach, too, and comments on Amanda's resistance to the water, which is ice-cold. Amanda: "Only at first. After a while, you can't feel anything." Lydia: "Sounds like my marriage." Gah. Lydia introduces herself as Amanda's landlord, and Amanda feigns astonishment at how quickly word spreads. Lydia: "Like lightning." Gah strikes twice! They make small talk about the memories Lydia has in that house and Amanda's hope of creating new ones. Lydia make a joke about the security deposit, matter-of-factly welcomes Amanda to the Hamptons and walks off. Amanda throws off her robe to reveal a black one-piece swimsuit and runs to the water.
Later, Amanda sits at home with her laptop, watching a news clip that explains Lydia testified against a man named David Clarke who was on trial for treason. She testified on behalf of Conrad Grayson who was David's boss and connected David to channeling funds to a terrorist group which downed a commercial airliner, killing 246 Americans. FLASHBACK: Little Amanda is home one night with her father -- David Clarke. They talk playfully about starfish and whatever when David gets a phone call from Victoria, who sounds distressed. He tells Amanda to go play while he takes that phone call just as the house is raided by the FBI and they take him into custody. One of the FBI agents picks up Amanda and carries her out of the house while she screams and her dad calls out for her. /FLASHBACK. An interview with Lydia is now playing on Amanda's laptop. "David Clarke had everyone fooled, including me. I'm just glad I can help put that monster away," Lydia says. Amanda clicks through a slideshow of spy images showing Lydia having an affair with Conrad. She smiles to herself.