Season 2, Episode 3 of "Based on a True Story" kicks off with the grim discovery of yet another woman's murder. Upon witnessing the newsflash, Ava instantaneously jumps to the conclusion that Matt is back at his grim deeds and confronts him head-on without delay. Matt vehemently denies any involvement, asserting that he was peacefully slumbering on her couch throughout the night. Tory rushes to his defense, and even Nathan offers him the slightest doubt, albeit reluctantly. Ava, however, remains unswayed and is bent on proving them all wrong.
Later, Nathan's revelation that he inadvertently left their webcam active provides a glimmer of hope. They scrutinize the footage, uncovering Matt sneaking out under the cover of darkness. Ava armed with this fresh evidence confronts Tory once more, who stands her ground, insisting on Matt's innocence and taking offense at Ava's skepticism.
Distressed and desperate for clarity, Ava decides to transform their basement into a sanctuary of productivity – her new office. Money woes loom large as they scrape by with just $20,000 in savings, urging Ava to expedite her return to the real estate world by renewing her license. During a heart-to-heart with Drew, Ava pours out her frustrations about Tory's seemingly blind loyalty to Matt. Drew, offering words of wisdom, urges Ava to help her sister see reason at any cost before rushing off to attend to a work emergency, hinting at a possible drink later.
Elsewhere, Nathan's attempt to donate memorabilia from his career to Christa's charity drive falls flat when she turns him down, adding insult to injury by announcing a charity match with his nemesis, Danny Merrick.
Determined to uncover the truth, Ava sneaks a doll equipped with a nanny cam into Tory's place and spends a tense night monitoring its feed. When Matt stealthily departs in the dead of night, Ava hastily awakens Nathan, and they tail him to a club. Matt, however, catches them red-handed and confronts them, explaining that he visits the club to engage in axe throwing with a new acquaintance, Nick. Just as the confrontation simmers down, news breaks of another murder, six hours prior. This stunning revelation clears Matt's name, but not his heart, as he grapples with the painful truth that someone is determined to tarnish his legacy.
The following day, Ava joins Tory at her cake-testing session, hoping to mend fences by offering an apology. However, Tory, exasperated, tells Ava to get a life and cease her intrusive surveillance. Deflated, Ava retreats to her past as a crime watcher, stumbling upon a video featuring the last victim. Driven by curiosity, she slips into the apartment to witness the grim crime scene firsthand. To her astonishment, Drew appears on the scene, prompting Ava to scurry into hiding. The revelation that her budding friend is actually a detective leaves her stunned.
Later, over drinks, Drew casually mentions her role as a homicide detective, though she keeps it under wraps. Meanwhile, Ava delicately feigns disinterest in crime, hoping to steer clear of Drew's disdain for those overly fascinated by it. Drew confides in Ava about her relentless pursuit of the elusive Westside serial killer, noting his recent shift in modus operandi. She reveals that the killer recently left a rosary on one victim, hinting at a deeper, perhaps ritualistic, motive. When Drew steps away to attend to her child, Ava seizes the opportunity to snap pictures of case files hidden in Drew's bag.
Elsewhere, Nathan finds himself struggling to master the art of axe-throwing at the club, accompanied by Matt and Nick. Matt perceives Nathan's frustration and inquiries about it. Nathan, opening up, shares the story of the auction. Seeking redemption and a way to prove his prowess, Nathan, under Matt's misguided encouragement, plunges into a risky decision, wagering all their savings on the outcome.
Returning home after her enlightening encounter with Drew, Ava dives into solving the puzzle, her mind racing. Gradually, the pieces fit together, and she realizes that the new serial killer is mimicking infamous murderers. The episode concludes on a suspenseful note, with a shadowy figure silently trekking past Ava's house, leaving viewers on the edge of their seats.