The Penguin's third episode, "Bliss," opens with a flashback to the night of The Riddler's attack. In Crown Point, we find Victor at home with his parents as he tries to encourage his dad to get a job where he can earn more money. Heading out with his friends, he kisses the girl he likes before an explosion sees water rush through the city streets.
A helpless Vic, watching from a nearby rooftop, tries to call his mom but is forced to watch as his home is obliterated by the flood water, killing his entire family in the process.
Back in the present, Oz has mostly forgiven Vic for his screw-up with the diamonds last week and made the kid his driver. His hope is that the Falcones will take out Sofia for him and, when Vic meets her, he's clearly nervous to be in the presence of "The Hangman."
During the conversation, we learn that Oz used to be Sofia's driver and they set off to meet the Triads (after Johnny Viti reminds her she has only two days to get out of Gotham City and go to Italy). They're trying to sell "Bliss," a drug given to inmates in Arkham Asylum. It's a new kind of high that's a psychoactive compound made from mushroom spores.
Could that be a nod to Scarecrow? It certainly sounds like something Dr. Jonathan Crane might create!
While this is happening, Vic decides to leave with his old girlfriend and make a new life in California. While attempting to pluck up the courage to tell Oz of his plan, a cop shows up and points out he's in a Loading Zone. Before he can discover the drugs, Vic pays the guy off, giving the teenager a glimpse at the sort of power the corrupt have in this city.
Oz takes Vic for lunch in a very posh Gotham restaurant and they bond over their similar pasts. However, they're there for another reason because Oz approaches Tina, Luca's wife, setting Johnny up so he and Sofia can catch him having sex with the don's other half.
They need Johnny to tell the Triads he's on their side and, when Viti calls Oz "Penguin," he absolutely loses it. The plan works, anyway, and Bliss is a hit. Vic, who freaks out when he hears a series of loud bangs in the club, tells Oz of his desire to leave and the gangster is hurt to learn that the teenager feels he's some sort of hostage.
Holding a gun to Vic's head, Oz reminds him that being an honest man got his father nowhere and demands that he leave. Taking Oz's car, Vic watches his girlfriend leave but decides against joining her.
Meanwhile, we learn Oz told Carmine about Sofia but didn't know it would lead to her being set to Arkham. A tearful Oz admits it was all worth it to get a better life but apologises. It's then that Sal Maroni's wife shows up. They know Oz has played them and, just as he and Sofia are about to be gunned down, Vic shows up and mows down one of the shooters.
Oz escapes with Vic, who has made his choice but leaves Sofia behind. They're in it now!