A walking stick, said to have the power to create earthquakes, has gone missing from a museum in Illinois, and since Pete linked it to some recent burglaries before Myka did, he's celebrating by playing with everything else in the museum, but his game is cut short when Malone, a security guard, walks in, holding the stick. They give chase, splitting up to corner him, but as Pete ducks out of the museum, Mrs. Frederic appears and tells him to throw the case and let Malone get away. She warns him not to tell anyone, then speeds away.
Pete and Myka are greeted at the warehouse by the gruff Benedict Valda, a warehouse regent. He warns them that their sloppy work has put everyone - even Artie - on probation. Myka turns to get back to work on the walking case, but Pete makes excuses to secretly meet with Mrs. Frederic, who tells him that there's a leak in the organization. Pete can't tell anyone, especially Myka, what's going on. Back on the case, Myka knows Pete's acting suspicious, but because of Mrs. Frederic's warning, he can't tell her what he's seen: Valda meeting with Malone, his last known whereabouts, and calls he's been getting from Valda threatening the lives of everyone in the warehouse. Myka and the team confront him, saying they believe he's drinking again. He vehemently denies it, but still can't tell them what's up.
Pushed to the limit, Pete goes off the grid. Heading back to Chicago, he gets his hands on the earthquake-causing artifact, then reaches out to Kate, an old contact, for help, and things get steamy, fast. Just as he's about to take their relationship to the next level, Myka bursts in, saying she's on orders from Valda to arrest Pete, but he won't go quietly: he beats the stick on the ground and makes his getaway. Kate tries to help, but is swiftly taken out by a sniper. Pete dashes away.
At the same moment, Myka walks into Kate's office to discuss Pete: the love scene, attempted arrest, and Valda's murderous plot have all been figments of Pete's imagination, a fact Artie discovers when he learns that Pete was toying with a telegraph - also an artifact - in the Illinois museum.
But Pete is getting worse, and is out for blood. He tracks down Valda and arranges a rendezvous at a junkyard, quickly dispatching Valda's bodyguards and threatening Valda's life. Myka and Artie show up with some devices to return Pete's brainwaves back to their normal frequency, but Pete fights against their ministrations. Believing snipers to be everywhere, he opens fire and uses the earthquake stick, nearly causing cars to topple on everyone there. Just as he's about to go off the deep end, Artie tries a combination of high frequency sound and light waves that snap Pete out of his deep hypnosis. Valda is highly disgruntled, but after Pete receives one of Mrs. Frederic's signature apparations, he knows that things will get back to normal - as far as normal goes at Warehouse 13.