- Section 9 is still looking for the Laughing Man, who appears in various shapes. Meanwhile, the police head commissioner must be protected.
- A man enters Nanao's room, they talk of how the plan is unfolding, then Nanao is shot and killed.
A police motorcade arrives at an assembly hall, Superintendent General Daido is to give a speech. The Major is in the audience waiting for something to happen. Suddenly one of the security guards starts yelling and waving a taser-like weapon. The Major knocks him out and plugs into his back-of-neck port. She realizes someone else is scanning the man's brain also.
Batou and Togusa find the dead body of Nanao and are puzzled why he was killed.
Major Kusanagi copies the virus from the guard's brain over to Aramaki and Ishikawa for a "vaccine". Other people start to be taken over and take shots at Dido. He is wounded. S-9 discovers the virus is only specific for the security guards so the Major thinks something else is causing the situation. The Major and a guard lead Dido to a parking garage, there are more assasins and with some Tachikoma support the S-G is taken away in an ambulance.
At the police station S-9 observe people being interviewed, some claiming to be the Laughing Man. There is no trace of brain contamination or virus. The Major returns to S9 HQ to pick up Aramaki.
Aramaki says there will be a police release stating the Laughing Man caused multiple cyber brain contamination. Aramaki and Motoko continue to theorize, figuriing there's a police coverup using Nanao but the copycats are not related.
Daido is on the phone in his hospital room discussing his sudden retirement and the future "arrangements". Aramaki and the Major arrive and tell him that S9 will be starting an investigation and will look into the links between Daido and Serrano Genomics. Aramaki drops a file on the bed.
On leaving Major Motoko notices Laughing Man logos on people's shirts and bags. Aramaki says the Laughing Man is a ruse and the Major is still puzzled about who was scanning the guard's brain back at the assembly hall.
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