The episode of "Liar Liar 1" begins with the protagonist, Shinohara Hiroto, reflecting on the concept of hierarchy in the world. He then introduces himself as the new Seven Star at his academy, the Eimei Academy, and challenges anyone dissatisfied with his rule to face him in a game. However, he immediately regrets his bold declaration as his classmates mock him.



Later, Hiroto encounters a beautiful girl, who he later learns is Saionji Sarasa, the granddaughter of the academy island's director and the only Seven Star on the island. After a misunderstanding, Sarasa challenges Hiroto to a game. The game they play is a turn-based star battle in hard mode, where the goal is to make the opponent show a reaction or emotion. Despite his lack of knowledge about the game and the island's system, Hiroto manages to win and receives a red star from Sarasa.



After the game, Hiroto is summoned by the director of Eimei Academy, Ichinose Natsume. She explains that Hiroto has broken a taboo by defeating Sarasa, a member of the prestigious Saionji family. To resolve the situation, the director suggests that Hiroto become a Seven Star by using the special effect of the Red Star, which allows its holder to tell a single lie about anything.



Hiroto agrees to the plan and lies that he is a Seven Star, even though he is actually a One Star. Later, Sarasa, who turns out to be a double named Akabane Rina, confronts Hiroto, believing he knows her secret. However, Hiroto reveals that he knew nothing about her secret and that he is not a true Seven Star but is lying about his rank for his own reasons.



The episode ends with Hiroto arriving at his dormitory, where he is greeted by a cute girl, much to his surprise.