Section Nine suspects that the police department task force covering the Laughing Man case are attempting to fake the capture of the hacker by substituting a ringer named El Nanao. Kusanagi works with a friend named Kurutan to learn more about the Laughing Man case. Section Nine's suspicions about the police setting up El Nanao prove to be correct but he's assassinated before the heroes can get to him, set up as a fall guy for the Laughing Man.
The attempt to shut the Laughing Man case down proves to be a miserable failure, however, when the press conference is hijacked by the Laughing Man who threatens to kill the Superintendent unless he tells the truth.
This episode contains the following tropes:
- Caught with Your Pants Down: In a sense. One of the guys who Section 9 interviews about Nanao is watching porn the entire time, and he doesn't even bother to look up from his monitor as he's answering questions.
- Deceased Fall-Guy Gambit: A hacker is willing to pose as the Laughing Man and even go to jail, as long as he becomes a celebrity. He finds out too late that his co-conspirators think this plan will work better if he's dead. "Don't worry, you'll be more famous this way."
- Did Not Think This Through: The police department's Xanatos Gambit falls apart due to the fact they didn't realize the real Laughing Man (if such a creature exists) might use it as a tool to continue gathering exposure for his cause.
- Dirty Cop: The police department is willing to fake evidence, murder, and lie to the public in order to close the Laughing Man case.
- Grand Theft Me: The Laughing Man uses a hacked cyberbrain to appear at the conference.
- Not Distracted by the Sexy: Motoko is too busy researching the Laughing Man case to partake in any potential sexy times while either of her ladyfriends while at their place, with them both falling asleep by the time she logs off the net.
- Small Name, Big Ego: El Nanao wanted to be a scourge of the corporate but never achieved much of any fame or effect. The chance to become the infamous Laughing Man is too good an opportunity to pass up.
