And what's an Upper East Side party without a dramatic blowup? With most of the gang conveniently at the horse show, The Spectator sends out a blast revealing that Lily and Steven slept together. Sage storms off in her usual high school hissy fit, while Serena chooses to confront her mom and boyfriend. But miraculously, or maybe because Steven's lack of common sense is contagious, everyone forgives each other and almost immediately forgets about the embarrassing incident.
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