Shawn and Gus visit Jimmy in the police station who tells them he's innocent. He didn't know about the affair. Shawn goes back to the beginning and asks about the races Jimmy lost. He said the horses were all running great until they hit the clubhouse turn then the all faded down the stretch. The guys go back to the track and don't see anything suspicious at the clubhouse turn. While there, they stop by and visit Barry in the announcer's booth to get a better look at the track. In his office Gus recognizes a Chocta Indian artifact. Barry tells them he's actually one-sixteenth Indian. Ryan, the photographer who tried to revive Juan Carlos, stops by to go over publicity shots. On the way out, Shawn spots a pile of videotaped races, which gives him an idea. He needs to look at the races again and goes to Henry, knowing he's got them all saved for research. But after watching them, he's still not seeing it. Henry tells him to broaden his vision, which frustrates Shawn, sending him back to the Psych office and the old "Second Spitter" case. He remembers that they all switched seats in class that day. He needs to look somewhere else for the spitter. Which leads him to look somewhere else on the racetrack. On the tape of Juan Carlos' last race, Shawn sees that he gets hit with something in the neck. But whatever it was, it wasn't meant for Juan Carlos. It was meant for the horse. This case is about fixing the races. That's why all Jimmy's horses faded down the stretch.
While playing the tapes for the cops, Shawn hears that Barry, while announcing Juan Carlos' race, was surprised when the target horse didn't fade down the stretch - as he was expecting it to. Barry was in on it. Shawn and Gus bring the cops down to the track the next day and during the big race Shawn notices Phil feeling confident about his bets, and Ryan not taking the same shots as all the other photographers. Shawn's solved it. Barry, Phil and Ryan wanted to cash in before the track closed for good. Phil made the bets on the long shots and Ryan used his camera as a dart gun, a weapon of the Chocta Indians, to take out the favorites on the track, using horse tranquilizer instead of poison, explaining why so much was found in Juan Carlos' body. Ryan wasn't trying to save Juan Carlos' life, he was looking for the dart to dispose of the evidence against them. Jimmy, now exonerated, thanks Shawn and Gus for their help and apologizes for the way he treated them as kids. Shawn, in return, apologizes for getting him kicked out of school and almost ruining his life. Jimmy laughs and tells them he went to live with his dad in Maui, possibly the greatest thing that ever happened to him. As he leaves, Gus finally confesses to Shawn that he was the second spitter, and he was not sorry to see Jimmy go.