Somewhere, James Gordon thinks to himself about just how terrible Gotham is. Daughter almost died, son is crazy, wife left him, we've heard it all before. Later that day he shows up to a robbery turned hostage situation, with some of Clayface's goons, Clayface nowhere to be seen. Gordon offers himself up as a trade for one of the hostages, and once he gets in, he just straight up shoots them all, something that Batman (who just showed up) can't believe, and can't believe it even more when Gordon shoots at him. But oh wait, it's not Gordon, it's Clayface. Bet you didn't see that one coming!
Bruce and Clayface begin to fight, but Clayface does something that sort of freezes Bruce up, and turns into his recently killed girlfriend, Natalya. The cops burst in, and in the chaos, Clayface grabs the jewels his men were stealing, and morphs into a cop, making his escape. Bruce later meets with Alfred in the cave, and determines the first course of action is to find where Gordon is, because Clayface wanted to frame him, and now that he's exposed, Gordon is expendable. Gordon, locked up in an old theatre, is already in the process of making that a little easier for Bruce, as he starts to break out of the ropes that tied him.
Still at the cave, Alfred poses a couple of questions to Bruce, one of which concerning Clayface's newfound ambition for such a high profile crime. The possibility of Clayface working with someone definitely comes up, but Alfred doesn't dwell on that too much, asking why Bruce froze up during the fight. Bruce on the other hand is more interested in who told Clayface Natalya new Batman. Alfred makes a somewhat sarcastic remark about not talking about it will make it go away. Bruce doesn't pay any attention to it, and just tells Alfred to get to work.
Gordon has freed his hands, and is out of the chair he was tied in, but is still chained to the floor by his ankle. Noticing an old spot light, Gordon starts to make use of all the old papers and posters around and makes a makeshift Bat-Signal, which of course Bruce sees. Before leaving, the two take some time to search through Clayface's hideout, but have to leave, as the light ended up drawing the attention of a crowd, one of whom is pushing a baby stroller full of jewels, and is quite ugly.