Clayface is sealed up in Arkham Asylum, but luckily enough for him, this time he has a friend of sorts. The inmate in the cell next to him was a big fan of his movies, and starts to recite some of his favorite lines from Clayface's old movies, which gets Clayface to start down memory lane.
As per usual with this book, Clayface had a childhood that wasn't anything to write home about. He wanted to stand out, and his finically struggling parents couldn't exactly give him all the cool hip clothes he thought he required, but even with some scraped together cash, new clothes didn't help him stand out as a child.
Then Basil tried to act as a kid, and all the way up to adulthood, he was told that he was simply too plain and there was nothing special about him. But Basil didn't give up, he heard there was someone in Gotham that could make dreams come true, and that person was the Penguin, who offered Basil a substance thought to be used by Native American Skinwalkers, which Basil stupidly accepted, not knowing what the terms would eventually be for his deal.
But short term, life was great. Basil's new found talents helped him win all sorts of rolls, and he couldn't be happier... until Penguin called, requiring Basil's shapeshifting for a few criminal activities. The stress of the work that Penguin was putting him through eventually made it so Basil couldn't even hold his form, and eventually it all came crashing down, to where he is today.
But that's all right, because Clayface has a friend to talk to! Oh no way, he's dead now! Well since there's nothing in Arkham fro Clayface anymore, he decides to break out, pretending to choke on some food, and coughing up a piece of him that gets in the gap of his cell when the doctors try to help him, which he later uses to pry open the containment cell.