Contains spoilers for this episode and earlier episodes.
Spike corners Teddy Bomber, a fugitive who hides explosives in stuffed bears and attacks large buildings. The capture falls apart when another hunter rides in on a horse and mistakes Spike for the criminal. This newcomer, Andy, is so confident in his cowboy costume and conclusions that he ignores the real bomber's protests. The ensuing explosion lets their target escape and leaves Spike furious. Back aboard the Bebop, the others find Andy's background and point out similarities between the two hunters, which only irritates Spike more. Another attempt at a masquerade party goes wrong when Andy arrives again and renews the misunderstanding.
Teddy Bomber tries to recover control of his own campaign by summoning both men to another building and demanding that they hear his explanation. By then, Spike is more concerned with beating Andy than collecting the reward. The bomber's threats barely interrupt their argument, and another explosion leaves the rivals fighting on a rooftop. Their exchange ends with Andy declaring Spike the better cowboy and giving him his hat, a concession that provides little satisfaction after all the damage. Teddy Bomber is finally arrested and tells a police officer about his opposition to wasteful capitalism. Andy soon appears beside the police transport with a new costume and name: he has traded the cowboy role for that of a samurai. Spike's rival has changed his act rather than his appetite for performance.