Episode 1 of Batman: Caped Crusader kicks off with an intriguing interrogation scene, where Clarence finds himself face to face with the enigmatic female Penguin, Oswalda, her silhouette looming large in the shadows, foreshadowing a surge in criminal activities. As the drama unfolds, Batman storms into the warehouse, dispatching henchmen with ease, only to be thrown off balance by a deafening explosion that rocks the very foundations of Gotham City. This marks the third such blast in as many weeks, each targeting enterprises with a common thread: Rupert Thorne. The string of attacks threatens to ignite a full-blown gang war, should caution be abandoned.
Undeterred, Batman delves deeper, uncovering a trail that leads to Wilford Lee, whose fraudulent electrical work at one of the targeted firms serves as a pivotal clue. In a daring late-night confrontation, Batman dangling Lee precariously above a speeding train, the truth is coerced out of him at the eleventh hour—Penguin, now in the guise of Oswalda, orchestrated the whole affair.
Meanwhile, the political arena heats up as Barbara and Harvey find themselves in court, Harvey campaigning with his trademark swagger for the position of Mayor. Yet, while Harvey maintains his theatrical persona, Penguin's transformation into Oswalda and the Iceberg Lounge's metamorphosis into a luxurious floating cruise ship serve as stark contrasts. The party aboard the ship thrives with revelry, all but ignored by Commissioner Gordon and Barbara, who remain steadfast in their vigilance, sensing the undercurrents of chaos lurking beneath the surface.
Naturally, an ensemble of admirers lauds Penguin for his unparalleled intelligence, Bruce Wayne among them, tardily gracing Penguin's soirée aboard the vessel. Oswalda's tactlessness is palpable as she addresses Thorne, boldly hinting at the narrow escape from annihilation in the preceding blast. Her survival, it transpires, is owed to a timely tip-off, sparing her from fatality.
Amidst the revelry, Oswalda's keen intuition unmasks a traitor within her ranks, prompting her to sequester the perpetrator within a container and plunge him into the depths, only to discover that the genuine culprit had fled. Thorne, unforgiving, rejects the misguided scapegoat, severing all ties. Ronnie, desperate for aid, seeks out Barbara Gordon, his plea for assistance met with swift action as she whisks him away, pursued relentlessly by henchmen. Batman's timely intervention foils their capture, sparing Ronnie from Commissioner Gordon's interrogation.
A revelation unfolds: Detective Bullock is secretly in Oswalda's payroll, divulging that Ronald is divulging secrets within the precincts of the police station. From the pinnacle of the Iceberg Lounge, Oswalda wields a long-range rifle, its sights locked on the police headquarters.
As Barbara and Gordon orchestrate an evacuation, Batman navigates his submarine towards the Lounge, engaging in a fierce battle against Oswalda's forces. Despite her valiant efforts, Oswalda unleashes a devastating shot, reducing the police HQ to rubble. Miraculously, all escape unscathed, yet Oswalda remains at large, a lingering threat for the time being.
