Cyrus sucks up to James in the White House hallway, looking for a favor. I don't know why James hasn't told Cyrus to fuck right off yet, because Cyrus treats him like shit. I like Cyrus as a character, even though he's maybe more evil than most, but he is a terrible husband. James is only partly to blame. Anyway, Cyrus wants to know how this lowly fashion writer found out the scoop of the century. James refuses to deal until Cyrus promises a really good scoop in return, and then gives Cyrus the name of a bar (Molloy's) where the Secret Service goes to drink. Cyrus kisses James and then sprints off without giving James the promised scoop, of course.
Some time later, in the same hallway, Mellie approaches Hal the Secret Service agent. She asks him if he knows how the rumors about Fitz and Olivia got started, and adds that she knows that they all drink about Molloy's. Flashback to Hal, already tipsy at Molloy's, saying something to the reporter about how Mellie found out that her husband was screwing one of his trusted advisors. Hal does deny giving the reporter a name, but with that information, how hard would it be to figure out? And let's face it, how many female trusted advisors does Fitz have? Mellie walks off and gives Cyrus an "I don't know" shrug, so we know that they are in cahoots.
That night, David Rosen comes into Olivia's office. Olivia says he shouldn't be there, and Rosen asks if it's because he might be called to investigate the President's affair with her. David says he doesn't want her to say much because he doesn't want to know, but wonders if she's going to admit everything up front (the "white hat" way) or deny it and take everyone she loves down with her. Olivia thinks he's making a lot of assumptions, but David counsels her that if there is proof of the affair, she won't have a choice. Abby bursts in and asks what David is doing there, though she doesn't seem unhappy to see him, and David asks her to return his calls, so we know they haven't been seeing each other throughout this whole scandal. Harrison bursts in and tells Liv to turn on her TV so that she can see the news airing a cell phone video that catches Fitz leaving her building.
Cut to Cyrus, watching the same video. Jeanine asks what their next move is, and Cyrus responds: "Start a kill folder on Olivia Pope." In case you, like me, don't know what a kill folder is, it's all of the information they can gather on Liv's background with special emphasis on anything they can use to impugn her reputation and/or destroy her personally and professionally. You'd think Cyrus would already have all of that information. I actually figured Cyrus has a secret drawer containing kill files on anyone he's ever met.