In the second episode of "Liar Liar," the story of Shinohara Hiroto continues as he now lives together with his new assistant, Himeji Shirayuki. Himeji Shirayuki is a student at Ouka Academy in District 3 but was appointed as Hiroto's assistant by the school principal Ichinose from District 4. Although she initially feels uneasy around boys, she assures Hiroto that she will carry out her duties diligently.

Shirayuki explains the ranking system of the academies on the Academy Island and emphasizes the importance of the students' stars. She also reveals that Hiroto's true rank is one star, meaning he can only use abilities at the level of a one-star in games. Nevertheless, she assures him that the company will do everything in its power to support him, not only in the games but also in his daily life.

Hiroto's first game challenge comes from a third-year student named Urasaka Haru. Despite Hiroto's initial concerns, Shirayuki and the head of the company's electronics department, Kagaya, assure him that they will lead him to victory through hacking. Hiroto wins the game and is strengthened in his belief in the company's capabilities.

Meanwhile, Hiroto meets with Tatara Fuuka, the class representative, who offers to show him around the campus. He also receives a mysterious message instructing him to go to a specific location. There, he encounters Akabane Rina, who turns out to be a doppelgänger of the real Saionji Sarasa, who was kidnapped a year ago. Rina asks Hiroto to help her maintain the lie that she is Saionji Sarasa until the real Sarasa returns. Hiroto agrees and reveals his own reason for staying on the island: he is searching for a childhood friend whom he suspects is there.

The episode ends with Hiroto returning home and encountering Kugasaki Seiran, a student who is upset about Hiroto's victory over Saionji Sarasa. The tension between the two hints at potential conflicts in future episodes.