Lacienga starts a rumor about Penny at school because "it was fun." The two are about to begin a fight when one of the commentators starts a rumor about Lacienga being romantically interested in Myron. Lacienga cracks under the pressure, and Penny steps in and gives a speech about how rumors can divide classmates, friends, family, and even enemies. She then sings a short song encouraging her classmates to stop spreading rumors.
While Double D is away trying to create a story, Eddy takes over the school paper and spreads misinformation in order to make profit. His rumors ruin friendships and pit the students against each other.