A writer (voiced by Martin Freeman) reads a passage from The History of True Crime in the Mid West explaining the bizarre events leading to the current situation. After recapturing Ed and Peggy Blumquist, Lou and Hank are forced to call in the South Dakota State Police, due to this being their jurisdiction. When Ed reveals his upcoming rendezvous with Mike Milligan to hand over now-dead Dodd Gerhardt, State Police Captain Cheney hatches a dangerous scheme to wiretap Ed and Peggy for the meeting, hoping to implicate Milligan and the Kansas City mob. When Lou strongly opposes this idea, Cheney has him escorted out of the state, though Hank stays behind. After Ed and Peggy agree to the plan in exchange for lesser criminal charges, the police plan an ambush at the motel meeting spot, only for Hanzee to observe their actions from afar. The narrator states that Hanzee betrays the Gerhardts for wholly unknown reasons. Hanzee lies to Floyd and Bear by claiming Dodd is being held inside the motel by the Kansas City mob. Meanwhile, Lou, who has discovered that Hanzee killed a gas station attendant, goes back to warn the other police that Hanzee likely knows of their plan. At the same time, Lou is unaware that Betsy has fallen seriously ill back home. Lou arrives at the motel too late, as the Gerhardts have ambushed Cheney and the other officers. Nearly everyone is dead except a wounded Hank and Ben Schmidt, who Peggy and Ed knocked out. Bear witnesses Hanzee stab Floyd to death. Bear is wounded by Lou, whom Bear attacks and attempts to strangle. In the midst of the madness, a UFO appears, hovering directly over the motel, distracting Bear and allowing Lou to fatally shoot him. Peggy and Ed escape, but are pursued by Hanzee. Hank tells Lou to pursue Hanzee and the Blumquists as police reinforcements arrive.