**July 31, 1999**
Episode 7 of "Cruel Summer" unfolds as Megan awakens beside Isabella in her bed, relishing the memory of her near-miss kiss with Luke. Megan harbors doubts about their compatibility, whereas Isabella urges patience, believing in the universe's eventual second chance.
The girls arise and embark on cleaning the house, still cluttered from Luke's chaotic 17th birthday bash. Unexpectedly, Luke appears, prompting Isabella to swiftly assign him tasks, cleverly diverting any awkward tension between him and Megan concerning their aborted kiss.
Once the mess is cleared, Luke and Megan prepare to discuss the party, but Isabella interrupts, asking Megan to join Luke at the cabin for an intimate chat. At the cabin, memories of their childhood resurface as they reminisce at the dock, reminiscing about how gross things once seemed appealing now – subtly hinting at their mutual attractions.
Through their static-laden radios, Luke and Ned converse while taking separate paths to the dock. Megan confides in Luke that her relationship with Jeff is over, revealing her singleton status. However, Luke encounters Ned, abruptly ending his conversation with Megan.
Reaching the dock, Luke and Megan finally converse, culminating in a tender kiss.
**December 31, 1999**
In her room, Megan's demeanor toward Isabella is distant, stemming from Luke's disclosure about Isabella's attempted kiss. Megan mocks Isabella's penchant for chaos, her sarcasm slicing through the air.
Luke and Megan find themselves at the supermarket, preparing for the New Year's Eve party amidst the looming Y2K countdown. They dissect Isabella's kiss attempt, with Luke asserting that her jealousy stemmed from Megan's undivided attention, painting a picture of Isabella's possessiveness.
Outside, Ned spots Megan and scolds her for embracing Y2K's festivities rather than fearing its potential disaster. Luke steps in, escalating the situation into a brawl as Megan desperately attempts to intervene. Ned's aggression escalates, leaving Luke with a chilling death threat before retreating into the night.
Back at the cozy cabin, Megan's fury blazed at Luke for his public altercation with Ned. Her anger reached its peak when a text from a friend informed her that the planned party had been canceled. Luke suggested they could still throw a bash at the cabin, but Megan, still shaken, refused, stating she had lost her partying spirit. Undeterred, Luke insisted on organizing an unforgettable New Year's Eve celebration at the cabin that would be etched in their memories forever.
Luke ventured to his father's office, where he discovered that Steve had been flooded with calls concerning his brawl with Ned. Steve erupted in anger, scolding Luke for his impulsive decisions and disregard for the family's reputation. Luke attempted to justify his actions, but his father cut him off abruptly.
Outside, Brent sought to lift Luke's spirits, reminding him that their father always valued their public persona above all else. Luke, undeterred, asked Brent for the keys to their cannery, planning to host the New Year's Eve party there. Brent, though concerned, handed over the keys, urging Luke to stay safe and wishing him a prosperous new year.
In the privacy of her room, Megan was petrified upon realizing she was pregnant. At Luke's party, she put on a brave face, smiling through the festivities despite her turmoil. The atmosphere was electric, with everyone anticipating some form of madness as the clock ticked closer to midnight.
Isabella bumped into Megan at the party, and the two exchanged words about their recent kiss. Isabella was convinced that Luke had initiated the kiss, not the other way around. Megan was furious with Isabella for not supporting her, while Isabella was hurt that Megan had automatically sided with Luke without giving her the benefit of the doubt.
Outside, Megan eavesdropped on Luke, who was boasting to his friends about his ability to hook up with both her and Isabella simultaneously. Overhearing his boastful words about "hooking up" with Isabella while dating her, Megan felt a deep sense of betrayal.
Ten minutes before midnight, Megan encountered Jeff, who recorded her making a New Year's resolution. She vowed to take charge of her life and avoid being manipulated in the coming year. Jeff found her resolution perplexing. Megan sought out Isabella and apologized for doubting her, now aware of Luke's true nature. Isabella encouraged Megan to forget about Luke and move on, but Megan was determined to make him pay for his actions.
As the party counted down to ten, Megan approached Luke, intending to kiss him in front of his friends. However, Luke surprised her by asking about Isabella instead. The countdown continued, and with the stroke of midnight, the new year began. Megan invited Luke to join her at the cabin to celebrate, but her intentions were far from innocent.
On July 31, 2000, Megan's attorney, Tom, imparted the grave news to her: she was required to accompany him to the Sheriff's station due to her official indictment for Luke's demise. Meanwhile, Steve disclosed to Brent that his Private Investigator (PI) had uncovered Megan's clandestine occupation. Steve alleged that she moonlighted as a hacker, illegally procuring data from websites and peddling it to eager clients. He further contended that Megan was in the employ of Ned Faunce, a longstanding adversary of Steve's. Steve speculated that Ned might have orchestrated Luke's murder stemming from a altercation between the two, which Megan was involved in.
At the Sheriff's station, Megan's lawyer discovered that she faced fraud charges for issuing bogus IDs, a revelation stemming from an investigation into her system. Worried about her scholarship slipping through her fingers, Megan beseeched Tom to make the charges disappear, but he helplessly asserted that his hands were tied. Tom opined that Megan had narrowly escaped a potential jail sentence, merely benefiting from her youthful age of 17.
Outside the bustling supermarket, Megan encountered Jeff and confessed her fears of forfeiting her college dreams in the wake of the fake ID scandal. Jeff's conscience got the better of him, and he confessed that he had admitted his guilt after being caught using one of the fake IDs. Megan, enraged by the prospect of her future being shattered by his actions, offered him a bittersweet farewell, wishing him well on his college journey despite her anger. Brent's unexpected arrival at Megan's residence delivered another blow; he informed her that Steve had employed a PI to delve into her affairs.
He inquiries deeply into her entanglement with Ned, a man who has not only embezzled millions of dollars from his employer but also physically assaulted his former supervisor. With concern etched on his face, he cautions Megan to steer clear of Ned, insisting that her association with him could lead to her own downfall.
Determined to salvage her future, Megan approaches Ned, pleading with him to infiltrate the court's database and expunge her criminal record, thereby averting the loss of her cherished scholarship. Ned, however, declines her request, deeming it too perilous. Megan counters by mentioning Steve's conviction that Ned is Luke's murderer, adding fuel to the fire by hinting at the scrutiny of his (Ned's) shady past.
Incensed by her accusations, Ned loses his composure and shouts at Megan. He storms into his computer room, with Megan trailing behind, as he delves into Steve's information. Through the CCTV screen, Megan spots Steve's car approaching and, panicking, bolts out of the house through the rear exit, her heart pounding with fear.
On her frantic escape, Megan bumps into Brent, who looks at her with evident disappointment but relents, allowing her to flee. Meanwhile, the tension between Steve and Ned escalates, with Steve accusing Ned of Luke's murder, while Ned brandishes a gun, ready to retaliate. Steve threatens to expose Ned's darkest secrets, but the latter retaliates with his weapon, heightening the already tense atmosphere.
Back at her residence, Megan receives a devastating call from her principal, informing her that her scholarship has been revoked.
