Back at the police station, Shawn and Gus are getting the cold shoulder due to their underwhelming performance so far, until they let everyone know not all the bills were counterfeit. Shawn says the culprit was running out of money and had to use one real bill, giving them the serial number to prove it. He needs to print more money and if they find a place where he can do that safely, they find him. At the Psych office, Lindsay comes by to admit that maybe they are better than she thought and she's willing to work together if they still are. Together, Shawn and Lindsay "psychically" determine that the counterfeiter's den needs to be someplace transient and remote, where someone can come and go anonymously, paying cash. A place where a large printer could make a lot of noise without being heard. Gus says he knows of a hotel that fits that description, is currently undergoing renovations and is used to dealing in cash.
The three of them meet Ewing, Vick, Lassiter and Juliet at the hotel. With their specifications added to a guest not wanting maid service, they find the right room but no counterfeiter. Lindsay says the guy printed $50,000 worth but Shawn, seeing empty wrappers in the closet, corrects her figure to $500,000. Lindsay claims that to be impossible. Lassiter finds evidence that the guy made a fake passport. He's running. They need to find him now.
As the cops and Ewing move to stake out exits out of town, Lindsay asks Shawn to continue their psychic work together back at her hotel room. After she tells him she broke up with her boyfriend, they end up spending the night together. The next morning, Shawn wakes up and Lindsay is gone. He searches her hotel room and only finds a receipt for coffee. He gets a call from Gus and they head to a crime scene. They've found their counterfeiter dead of a gunshot wound. Once again, everyone is already there. Lindsay reaches down and touches the body for vibes. Seems like that's the end of their counterfeiting case.
Shawn is bummed that in the end, Lindsay was better than him. Gus, trying to cheer him up, points out that he surprised her with the $500,000 thing. That leads Shawn to put it all together and they run to catch Ewing and Lindsay at the airport. It turns out Lindsay was in on it. She always seemed ahead of the case because she knew the counterfeiter, what he was doing and where he was going to be. He was her boyfriend. She met him for coffee in Goleta (the receipt he found in her hotel) on the same day the Lamborghini was spotted there. In his hotel room, she realized he was about to go on the lam without her. She killed him, then touched the body to cover the evidence. After they find the money in her suitcase, Shawn declares that the worst part of it all is that people like her give real psychics like him a bad name.