The climax of the inaugural season of "Overcompensating" unfolds as the students of Yates University dive into a studious frenzy, gearing up for the looming finals. Benny eagerly presents Carmen with his concise clip for the film studies introductory finals, brimming with anticipation. However, Carmen, though not impressed, refrains from voicing her disapproval immediately.
Elsewhere, Peter's fate takes an unexpected twist. Benny, fresh from his exams, ventures to meet the dean, anticipating the worst—expulsion and the dismantling of the Flesh & Gold society. Instead, a remarkable reversal unfolds as the dean commends Peter for catapulting the university into the limelight. Since the controversial leak, the dean's phone has buzzed incessantly with calls from prestigious news outlets, and the saga has even captured the pages of magazines and newspapers. Peter finds himself on cloud nine, emboldened to visit Charlie at Hawksworth Bank. With confidence radiating from every pore, he presents his case, and Charlie, seeing potential, asserts that Peter belongs at the bank. He vows to discuss Peter's inclusion with his team and invites him to return for an introduction to the crew.
Peter, buoyed by this promising development, returns to campus, eager to share his joyous news with Grace. Alas, Grace has already cemented her decision to sever ties with Peter, dealing him a personal blow. To compound his woes, he also loses the camaraderie he once shared with Benny.
What transpires in Grace's life is a tale of revelation and self-empowerment. Grace finds herself ensnared in a quandary, contemplating whether she deserves someone superior to Peter. The haunting text from Tatiana lingers in her mind, yet she remains clueless about the identity of this mystery figure and the unspoken history she shares with Peter. Her bond with Carmen deepens, until, in a heartfelt moment shared between them, Hailee inadvertently labels Carmen by her alias from the virtual realm, Tatiana Del Rey. This revelation strikes Grace like a bolt of lightning; she realizes that Peter and Carmen had a physical encounter, leaving her heart shattered and walking away in anguish.
Time heals wounds, and Grace eventually mends fences with Mimi, plotting to join the latter's show for the upcoming semester. At a festive gathering, Peter's unexpected appearance marks the culmination of her inner struggle. With steely resolve, Grace terminates their relationship, resenting the fact that she had to mold herself into someone she's not just to please Peter, who falls short of her worth. When Peter boasts about securing a job at a bank, Grace's sarcasm cuts deep, reminding him that banking demands mathematical prowess and labeling him as intellectually limited. She declares her detachment from him, hinting that he'll have to fend for himself in academic endeavors without her assistance.
Disillusionment also clouds her view of Carmen for her actions and Benny for keeping silent about them.
As for the reconciliation between Benny and Miles, the narrative takes a complicated turn. Benny has maintained an unspoken estrangement with Miles since discovering his sexuality. Miles, eager to mend fences, seeks clarification from Benny, who consistently evades him. In desperation, Miles confides in Carmen, who, initially urging direct communication, finds her advice falling on deaf ears. However, during a post-finals bash, fate intervenes as Miles and Carmen share a tender kiss, an intimate moment interrupted by Benny's stunned gaze.
What unfolds in Benny and Carmen's lives takes an intriguing turn. Benny, gradually embracing his true self, fosters a genuine friendship with George. Yet, the shadow of his sexuality still looms, as he harbors a fear of public exposure as a gay man. His romantic life spans miles, entangled in a long-distance relationship with Sammy, while he shares the intricacies of this bond with George. However, an unexpected encounter with the F&G guys at the supermarket triggers a panic attack in Benny, leading him to abruptly abandon George. Additionally, Benny deceives Carmen, claiming he has left the F&G society. Peter, assuming a pivotal role, appoints Benny as Caesar, embodying the freshman alpha spirit. With the Dean's approval of F&G, Peter decides to hold the Caesar crowning ceremony in the open.
Carmen discovers Benny's lie about quitting the club through Miles and decides to confront him at the ceremony. Benny's heart races as he spots Carmen amidst the crowd, finding the strength to finally sever ties with F&G. A heartfelt conversation unfolds between Benny and Carmen, where he openly admits his lingering fears and the relentless struggle to conform. Benny concedes that maintaining a false front is impossible in Carmen's presence and apologizes sincerely for his deceit. They reconcile, vowing to remain each other's beloved, albeit flawed, best friends. Carmen gently urges Benny to strive for honesty, even if it means telling fewer lies.
The season finale of "Overcompensating" Season 1 concludes on a dramatic note. Benny catches Carmen and Miles sharing a tender moment, which sparks a heated altercation. As Carmen chases after Benny, their disagreement escalates. The episode concludes with a twist: in the heat of the moment, Carmen inadvertently reveals Benny's sexuality to Grace, Miles, and Hailee, leaving an unsettling cliffhanger.