The second episode of "School Spirits" commences with Nicole and Claire witnessing the viral video of Maddie's ordeal on social media. Their concern escalates as they fear they might not be able to shield Maddie and grant her the space she needs to work on bringing Simon back. Claire suspects that Livia, the person behind the anonymous account, is targeting Maddie, and she's not the only one.

At the hospital, Xavier engages in a conversation with Kyle, requesting his assistance in locating a girl named Tracy. He also divulges that the accident was caused by someone jumping in front of the bus. In return, Xavier asks Kyle to find Dave, Maddie's father.
At school, Martin experiences a hallucination of a little boy inquiring about his fate. Upstairs, Simon shares with the group about Martin's scared expression when it started snowing in his scar. They discuss whether to let Martin out of his scar or let him suffer there. However, with Janet's absence, they need someone to conduct research. Wally brings up the hospital ghosts, but they agree that they don't know them well enough. Ultimately, they decide to talk to every ghost at the school to gather information. Quinn panics when they suggest she talk to the marching band, so Simon volunteers to do it instead.
On the other hand, Charley spots Yuri looking at another living boy. At home, Maddie's behavior continues to worry Sandra. Nicole and Claire try to shield Maddie from the video, but she's already seen it. Maddie isn't bothered by the trolls; she's more focused on helping Simon.
Later, Claire confronts Livia about the troll account. Livia attempts to conceal her role as the admin of the page, while mentioning that she saw Maddie at a college party last time. She speculates that Maddie is lying about her disappearance and is also upset that Claire quit the cheerleading team ahead of the regionals.
Meanwhile, Maddie discovers a message on Simon's tablet about a girl named Sabrina. At school, Quinn watches as Simon tries and fails to communicate with the choir ghosts. Xavier tells Maddie about Kyle and suggests that the accident might not have been as accidental as they believe. However, he fails to mention that Kyle asked him to look for Tracey. Instead, he encourages her to ignore the ignorant students giving her side-eye.
Conversely, Wally discovers the trending Maddie video and realizes that Livia posted it. He immediately tries to tell Maddie, but she asks him to get the evidence first. At the dining hall, Charley grows more insecure as Yuri continues to watch the boy from before. With all eyes on her, Maddie asks Nicole and Claire to guard the boiler room door while she talks to Simon. She inquires about Sabrina, and he reveals that she is his biological sister. His parents believe he is on a trip to bond with Sabrina, unaware that he is stuck in the afterlife.
Simon mentions that they are working on a new experiment and wants Maddie to convince the ghosts to let Martin out of his scar. She expresses skepticism about the idea, mentioning the weird PTSD she has been experiencing but insisting that she is fine.
Janet's rise to prominence also comes up, and Maddie expresses her joy for her friend. As they converse, Principal Hartman spots Claire and Nicole and sends them away. He opens the door to find Maddie alone and summons her to his office.
At the hospital, Xavier meets with Kyle in the morgue. Unfortunately, Kyle has not found David yet. When Xavier mentions Quinn, Kyle is confused since he doesn't remember such a person. He wonders if Quinn was the one who jumped in front of the bus.
Charley finds Maddie waiting outside the principal's office and vents to her about Yuri. Although she can't hear or see him, he finds comfort in talking to someone. Just then, Xavier calls and reveals the suspicious nature surrounding Quinn. Charley overhears the conversation and shares Xavier's concern with the other ghosts. The scene cuts to Quinn hiding in the bathroom.
The ghosts immediately start investigating Quinn. Rhonda is hurt by the suspicions and insists that she will find out the truth. At the principal's office, Hartman assures Maddie that he will find the person behind the troll account. He offers to call Sandra, and Maddie panics. She lies that she posted the video to troll her haters. Hartman is confused and starts to second-guess whether Maddie got hurt in the boiler room. She clarifies that she doesn't remember her attack.
As the ghost investigation into Quinn deepens, they realize they didn't know much about her. They can't find her in the yearbooks or school records. Simon accidentally stumbles upon Quinn's scar and goes inside to witness the brutal accident scene. Suddenly, things get scary as it starts to snow, and a dead drummer boy continues beating his drums.
After visiting Quinn's scar, Simon talks to Wally about it. He tries to convince Wally that they should set Martin free. In real life, Nicole panics after realizing that Livia saw Maddie at the college party. She starts picturing the worst scenario. Xavier asks her to calm down and turns his attention to his search for Tracey.
Later, Nicole decides to go undercover to uncover how much Livia knows. Meanwhile, someone pours fake blood on Maddie as she's taking her yearbook photo. Maddie takes it in stride and insists on taking the picture as is. Quinn witnesses it all and it inspires her to be braver. Sandra, using a spy app, reads Maddie’s messages and discovers what happened.
After hearing about it, Wally checks in on Maddie. She admits that she feels crazy since she's living in two worlds. Wally offers to take a break or break up if their relationship is making it worse. However, Maddie reassures him that his presence is a good thing.
Elsewhere, Charley has had enough of Yuri's obsession with the living boy. Yuri drops a bombshell that the kid might be his grandson. However, they don’t get a chance to talk given everything else going on.
In the meantime, Simon fetches Martin and brings him to the ghost meeting. Of course, Maddie is present. Quinn opens up and reveals that her real name was Jacqueline, and she was an introvert who intentionally missed picture day. Quinn identifies as non-binary but unfortunately, at her time, no one understood how she felt, and she hid. She apologizes, and everyone forgives her.
Outside, Nicole uses her photography skills to infiltrate the cheerleader group. Inside, Simon brings Martin and convinces everyone that they need to hear him out. Martin reveals that when he was young, his friend, Ralph, was hit by lightning. Martin got scared and left because the boy was unresponsive. Upon returning to the cemetery where Ralph was, they never found him. No one knew what happened to Ralph.
Years later, after his death, Martin heard the same song he heard the day Ralph went missing. He followed the voice and found a hole in his scar. Always curious about science, Martin explored the hole. Inside, he saw other ghosts. Before he knew it, he was pulled by a dark entity into a mass of water. He tried to find his way out and when he was free, he found himself in front of the bus. The driver swerved upon seeing him, which led to the accident.
Martin blames himself for the accident and believes the dark entity used him to cause the deaths of 8 students. He also believes it is how Simon got sucked into the afterlife. The episode ends with Simon asking for directions to the hole.