A shadow from Manjusha's past comes back to haunt her. Meanwhile, Cliff professes his love for another staff member, and we learn the history of "Magic Funhouse!"

Cliff suspects that Dave may be trying to murder him. Arlo tries to boost employee morale by taking his staff to laughter therapy, and Sacha engages in a turf war against two children.

Arlo sinks deeper into insanity and tries to cancel his own show. Mr. Chronis opens up a dinner theater, and Dave seeks revenge.

"The Magic Funhouse!" cast and crew find themselves before a judge on live court TV as they describe the events over the past six months the way they remember them.