Picking off directly from last week's episode, Nanao has just unleashed a virus into the police broadcast line. Using an interceptor in an S.I.D officer's eye, he is watching Batou and Togusa try to trace the connection. He talks to himself, wondering what he'll do before the S.I.D find his place and come to arrest him. The doorknob turns, and Nanao looks to the door...
We cut to the hotel, where the graduation ceremony that General Daido is making a speech at is being held, the police have noticed a possible attack on their communication line, and they are all ordered to check to see if their cyberbrains are functioning normally. Meanwhile, Kusanagi has already figured it out, a virus has been confirmed and sent, but she won't know it's function until it is activated. She guessing by the signal that the virus must be targeting one of the SPs guarding General Daido. Someone's brain is going to be hacked, and so everyone is alert... including a Tachikoma, which is crawling the ceiling in thermoptic camo.
Batou has traced the signal, Nanao is close by, and he and Togusa rush off to get him, much to the dismay of the S.I.D, who are totally out of the loop on this. Nanao is talking to his unseen visitor now, saying that it was a good idea to send the virus from another location, if he had been caught at his home, it would be harder to believe he was the Laughing Man. Nanao wonders why his guest is so early, and says he thought the plan was that he would be arrested fleeing from his terminal. His guest then pulls a gun on him. Nanao asks why, is he joking? if he's killed then who will be arrested as the scapegoat for the Laughing Man? The guest talks grimly, saying Nanao isn't needed alive to "be" the Laughing Man, and assures Nanao he'll be more famous this way. Nanao is shot point blank in the head, and he falls to the floor dead.
Back at the hotel, the SPs all rush to Daido's side, warning him that they found the possibility someone is being cyberbrain hacked. The Commander SP asks Daido to postpone his speech while they check everyone. Daido agrees. Just then Kusanagi and Paz start walking towards Daido. An SP immediately stops them, asking for name and rank. Kusanagi tells him to be quiet, and to realize that the SPs are the ones most likely to be infected. She says that by looking at an analysis of the latent virus, the possibility of infection is either those in Commander Class, or everyone else. Sensing that everything is about to go haywire, Kusanagi and Paz rush the stage, the SP Commander orders them to be stopped, but mid sentence, he suddenly pulls out a knight stick and stops talking, struggling with himself - he is being hacked. He suddenly yells out a battle cry "It is the beginning of the purge" and raises his night stick over Daido's head. The other SPs are totally caught off guard, but one manages to block the Commander's attack, but by getting his arm sliced in half in the process. Another SP jumps the Commander from behind, but is quickly dispatched. By now, Kusanagi and Paz have reached the stage and engage in combat with the Commander. Kusanagi tells Daido to stay away unless he wants to spend his retirement life in an intensive care unit. Daido is NOT amused. The SP and Paz are unable to stop the Commander, but Kusanagi gets the jump on him - literally, before punching his abdomen hard and disabling him. Everyone in the audience just stares at the stage.
Kusanagi turns the limp Commander over and plugs into his cyberbrain. She checks out the virus and then realizes that someone has copied this virus online. Before she can dive deeper, the virus sends off a shock back at Kusanagi - luckily, she has put up a barrier, if she didn't, her brain would have been fried. She makes an offhand comment about how someone else was also looking into the Commander's brain, the same as she was, and wonders who.
Batou and Togusa storm Nanao's hideout. They of course find him dead. Togusa is puzzled, because he was certain that Nanao was supposed to be used by the unknown conspirators to trick the S.I.D into thinking they caught the Laughing Man. Batou realizes that nothing is so certain, and says maybe it's like a lizard casting off his own tail. Togusa notices Nanao's face, he has a big smile. Batou is amused, and says he is laughing. Aramaki is not pleased when he hears the news about Nanao, and figures the conspirators (which they're guessing is high up in Police HQ) must have realized that Section 9 knew something was not right about Nanao, so they eliminated him so he wouldn't have the chance to talk. He tells Batou and Togusa to record as much information as possible and then leave the area before the S.I.D. get there.
Kusanagi sends a copy of the virus to Aramaki, she says that the virus was only designed to react with the Commander's key, so she thinks no one else here would be able to be infected with it, but to make an antidote just in case. Armaki agrees, and tells Borma to make immediately. He tells her about Nanao's death, and the two talk about what a good performance the conspirators are playing. Kusanagi begins to tell Aramaki about how she felt someone else watching the Commander's brain while she was copying the virus, but she's interrupted by a noise in the crowd. It's the press, they are going crazy wanting to know what has happened and are trying to get inside and to Daido. Kusanagi has a bad feeling, and tells Aramaki to hurry up with that anti virus. She and Paz rush to Daido's side, and she calls Saito to keep an eye on the surrounding area.
Suddenly, in the crowd, there is a man with a gun to a woman's head. He announces out loud that he is the Laughing Man, and he will kill the General. He aims his gun right at Daido, but Paz steps in and knocks it, the shot misses, but hits another man in the audience - the crowd starts panicking and running away. Paz cuffs the shooter, but everything is spiraling out of control... if the virus is reacting with other people, anyone could become the Laughing Man at any moment. The police officers try to old back the press... but one suddenly stops, and starts walking towards Daido. He pulls out his gun, points it at Daido, and orders him to tell the truth or die. He shoots Daido in the shoulder before the SPs tackle him and hold him down. The shot isn't critical, but they now need to get Daido to an ambulance. Just how many people have been infected by the virus is unknown, and so it's imperative that they get Daido away from here before more pop up. Kusanagi calls Aramaki asking for an ambulance to be sent to the basement parking lot, and to hurry with the antidote for the virus. Aramaki tells Ishikawa to send the patroling Tachikomas to Kusanagi out. Things in the University are still hectic, the press and police are clashing, everyone is trying to find out what's happening, Kusanagi and Paz cover Daido, but with all the press in the way, they have no way out. Shots go off, and everyone flees, this gives them the chance to escape with Daido. When everyone clears, a camera man lies dead with a gun in his hand, and a Laughing Man pin on his lapel. Saito is on the roof, and has knocked out a man with a sniper rifle, "another one" he says. Kusanagi warns him there may be more, and not to let his guard down. Borma contacts Kusanagi and tells her that the anti virus is ready... however, the virus is only designed to work with the SP Commander's key... and therefore, whatever is causing all these people to try and kill Daido... it is NOT the virus. Kusanagi is frustrated, wondering just what else could be causing this...
Kusanagi nears the parking garage, but suddenly a huge cyborged man blocks her path. He hits Kusanagi so hard that her feet crack the floor below her. Luckily, a Tachikoma has been following and easily pins the man to the wall. With the man subdued, paramedics put Daido into the ambulance. But suddenly, a car comes screeching into the parking lot, the man inside the car yells for Daido to prepare to die, and aims his car for the ambulance. Luckily, Kusanagi has had the time to jump into a police armored vehicle, and drive it in front of the ambulance, the man his the vehicle instead, smashing his car up. Another man is hiding behind some parked cars, on his motorcycle with a gun in hand, but a Tachikoma in thermoptic camo catches him before he can make his move. The Tachikoma is extremely pleased with it's self, thinking it caught the Laughing Man. Meanwhile, outside, a frail old man asks a security guard which way to the hotel where the General's assassination is being held. The old man smiles - just like the Laughing Man. Kusanagi watches as the ambulance drives away safely. Saito and Paz come up to her and ask if she's ok. She sternly says not to worry about her, but to gather information on what has just happened.
Down at the police station, the police have rounded up all of the would be assassins and are interrogating them. Kusanagi, Batou and Togusa watch. One claims to be the Laughing Man, while another claims to have been "called out" by the the assassination announcment to become the Laughing Man and kill Daido. Kusanagi notes that these people don't look like people who would be fans of the Laughing Man, and is puzzled as to what's happened. A police officer tells Kusanagi that there is no evidence of brain washing, nor is there any trace of the people being affected by a virus. Kusanagi thanks the officer, and then leaves Batou and Togusa to sort out the details while she goes to meet with Aramaki. Batou jokes about it being a date. Kusanagi meets Aramaki in the next room, he asks her how she likes the coffee of police head quarters, she says it doesn't fit her tastes, and throws out her cup. She walks with Aramaki to the elevator, asking if he's going to the hospital to see Daido. Aramaki says he is, and mentions that because of todays events, Daido will probably be forced to retire. Kusanagi asks what the official police report on the incident will say, Aramaki explains they'll say that the assassins (or laughing man imitators) were a result of a virus made by Nanao, who will be recorded as the original Laughing Man. When Kusanagi asks about how Nanao's death will be explained, Aramaki says the S.I.D. believe it must have been caused by someone working on the Laughing Man case. Many different people worked on it, and there was infighting. The S.I.D. will continue to look into the case. Kusanagi and Aramaki drive to the hospital, and Kusanagi asks Aramaki what he thinks really caused the Laughing Man imitators. Over 39 people were caught all at one time in one place, some claiming to be the Laughing Man, others saying he spoke to them through the assassination announcment, there are no connections between them at all... and there seems to be no external influance, it just seems that ordinary people all saw the assassination announcement on TV, and took up terrorist behavior because of it. Aramaki simply says that in theatrical plays, the audience is often part of the play. Kusanagi says that doesn't answer her question, but continues talking, she still believes that there was some sort of underground plot with the police HQ to make Nanao a decoy... but she believes that the imitator assassins had nothing to do with that. So that's an entire new piece of the puzzle.
At the hospital, Daido is on the phone. He is talking to someone on the other end, talking about how he was surprised by todays events, even though it was prepared beforehand. He discusses how he regrets having to retire early, but thinks it's wise to remove everyone who has connections to "the case." He wishes the person on the other end good fortune, then hangs up. There's a knock on the door, Aramaki and Kusanagi enter. Daido is not pleased to see them. Aramaki says that he's sorry Daido was hurt, but it glad to see he's alright. Daido and Aramaki obviously do not trust each other, and both know the other knows something else is going on at another level. Aramaki gives Daido a file and tells him that Section 9 is now going to start their own case on the Laughing Man in order to bring about the real truth of the incident. Aramaki tells Daido that when he starts the investigation, he might be talking to him about the movement of money from Serano Genomics, and so he should get some rest while he still can. They leave Daido's room, and walk down the hall. There is a man on the phone with a Laughing Man t-shirt. As they walk into the parking lot and reach their car, Kusanagi notices there is a little boy with the Laughing Man symbol on his bag. She is preoccupied with this, and Aramaki asks her what's wrong. She says everything is stained in the same color. Aramaki decides to tell her what he thinks about the Laughing Man imitators. He believes there isn't really a Laughing Man anymore. That while the events might have sprouted from something that happened six years ago, they really have nothing to do with this case. The imitators were all opperating alone, only together in the sense they had the same goal, and independent from the original Laughing Man. A Stand Alone Complex. Kusanagi wonders to herself, if there is no original Laughing Man anymore, than what was it she saw looking into the SP Commander's brain? Aramaki tells her not to try to figure things out that don't fit yet. He says starting tomorrow they'll have to start from scratch and figure things out from there. They get in the car, and Aramaki suddenly remembers something... he asks Kusanagi to tell Togusa to put flowers on Yamaguchi's grave. After all, it was Yamaguchi who brought light to this case. Kusanagi agrees, and they drive off.
