With the threat to Superintendent-General by the Laughing Man, a possible suspect has been revealed named Nanao.  Section 9 continues their investigation covertly with most of them unsure that this is their man.  Batou and Togusa keeps watch over the suspect while Motoko and Pazu keep an eye on the Superintendent-General.  When the Laughing Man starts to make his move, Batou and Togusa move in on him but, it is a decoy and they arrive too late to stop the virus from being uploaded.