The villains move into their new lair and start sizing up their competition; Omarosa proves to be the HBIC as she immediately targets who she believes to be the weakest link; alliances form as each villain strategizes their way to the $200,000 prize.

After the first contestant is eliminated, a surprise guest visits; the remaining villains must compete in a masquerade ball challenge where limited clues and extreme costumes help them guess their castmates' identities.