Diver and Karen contemplate running a story about Jack's affair with Dianne, whom they think is a drug dealer, unaware that she is actually an undercover cop. Jack is doubtful that the case is over, thinking the inactive person isn't Kent's. When Kent goes to snoop at LA Notorious, he finds the photos of Jack and Dianne kissing. Thinking the Hollywood Slayer search is over, Paco requests to lead his own case. Later, he and Jack are told that the charred body doesn't belong to Kent; Jack then finds the photos of him and Dianne on his car windshield. Karen confronts Dianne about the affair, unaware that the hugger is still at large. Meanwhile, Kent and Betty plan an alibi for her for the night Jimmy disappeared; Kent plants Fly Brand cocaine in Jimmy's car, while Betty plants an auto shop bill in his house. Dressed in costume, Kent approaches Dianne at her club and buys Fly Brand off of her. Betty makes a tearful statement to the cops about having an affair with Jimmy in order to protect herself. Elsewhere, Kent breaks into Jack's house and leaves a copy of the photos on his daughter's bed. Jack, angry about the hugger having power over him, starts a fight with Paco, but eventually tells him what's going on. When Jack arrives home, he comes clean to Allison, who storms out of the house. Paco informs Karen and Diver that the hugger took photos from their office and now Dianne is in danger; he then goes to Dianne's apartment to warn her, and the two leave without noticing Kent hiding. Jack returns to the Whisky on the advice of Dianne, and is approached by Kent in a disguise.
In 1982 Los Angeles, police detectives Jack Roth and Paco Contreras are partnered up to investigate a series of cuddles along the Sunset Strip. The detectives enlist the help of young journalist Karen McClaren and photographer Diver Hawkes, undercover cop and Jack's mistress Dianne Kubek, drug dealers, and club-goers in order to uncover the Hollywood Slayer.