Daniel arrives home and comments on Daisy having used the guard's phone to order pizza. She tries to talk to him about the baby, saying she wants to be a mom, and thinks he would be a great dad - they could make this work. Daniel scoffs that the kid will be in college before she's up for parole. Daisy asserts that she won't spend one more day in jail. Daniel asks what changed to make her think that, and grills her about who she called. He warns her whatever she's up to, it's not going to work. Daisy yammers on about where she and the baby will live, and Daniel's visitation. Daniel warns her about trying to outsmart him, and goes over the reasons he can have her parental rights terminated. Daniel then leaves, telling the guard, "No more phone calls!"
Jana shows up on Kevin's doorstep. Exasperated, he asks what she's doing there. She says she came to celebrate on this great occasion - he's going to be a dad! Kevin grabs a bottle of beer and sucks it back before asking if she's saying she's pregnant. Jana says no, she's talking about Daisy's baby, and explains the nature of their deal. She pops open a bottle of champagne as Kevin shakes his head. Jana elaborates that she told the police Sara was responsible, not Daisy, and now he'll get the child. Kevin feels she hasn't thought this through. He says there is something he needs to do and shows her out. She asks to spend New Year's with him, but he declines.
Nick comes upon Phyllis working in Crimson Lights. She says she has a deadline in three hours. Nick says he had to leave Faith with a nanny to go into work. Phyllis brings up Sharon and lets Nick know that she has gone looking for Skye. He asks how she knows. Phyllis explains that Adam told her. Nick comments on her writing a follow-up article on Adam that will humiliate Sharon. Phyllis rolls her eyes and tells him to let loose on her about the mother of his children, but Nick surprises her by saying he supports her - he's had a dose of reality. Phyllis muses that she used to fantasize about this. Nick says he's done trying to protect Sharon from Adam and herself - if she ends up being collateral damage, it's her own fault.
In Hawaii on the volcano, Sharon asks Skye how she could let Adam hang for her murder. They argue about whether or not Skye will return to Genoa City with Sharon. Victor approaches and hears them. Sharon decides to take a photo of Skye to prove she's alive. Skye lunges for the camera and slips. Sharon grabs Skye's hand as she hangs on for her life above the hot lava, but she can't save her. Skye falls into the volcano, and Sharon screams. Nearby, Victor seems stunned. Sharon pleads for someone to help, but Victor stays hidden. When Sharon goes for help, he looks down into the fiery volcano.
Back at the outpost, Sharon tells the authorities about what happened to Skye. She says she came looking for her because everyone believes she is dead. Sharon wants to show him the photo on her camera, but it's gone. The detective says they should go back up and see what they find. Sharon's phone rings - it's Nick. He wants to know if Victor is with her. Sharon tells him she found Skye but has to go. They head outside and back up the volcano. The detective thinks the site is inconclusive. Sharon's tour guide reappears and they all go back to the outpost, where the detective decides that Skye was never there. Sharon protests. The man sneers that Skye conveniently fell off the mountain. He says unless she brings him proof Skye was on the island - no death certificate! Sharon talks about the perfume, but the Hawaiian store owner denies it came there. Sharon tears up.
Kevin arrives at Daniel's house and confronts Daisy about manipulating Jana. He hollers that she took advantage of Jana, who is messed up by what Daisy's family did to her. Daisy screams that she wasn't going to give him the baby anyway. Kevin says he doesn't want her kid, and then gets in her face. He promises that he'll see to it the baby is taken away from her the second she's born - and warns when Jana learns he has no interest in the baby, Daisy will lose her ally! Jana reappears after he leaves and offers Daisy a non-alcoholic toast. She tells her she changed her statement. Daisy asks if she told Kevin. Jana says she did, and he can't wait to be a father. Daisy grins and tells her she should go, and not to come back tomorrow. Soon, Daniel returns with a U.S. Marshal, who tells Daisy he'll be taking her straight back to jail once the baby is delivered.
Nick shows up at the jail to see Adam. They spar and bicker. Nick says he doesn't care what he and Sharon want to do together, but he'd better stay away from his daughter. Adam wonders if Nick will use Faith to keep them apart. He warns if Sharon wants them to be a family once he's out of jail, there will be nothing Nick can do about it.
Back at Crimson Lights, Phyllis asks Kevin if he's given anymore thought to her adopting the baby. Kevin says that's all he's thought about - he muses that all this insanity has made him realize he's no more ready to be a parent than Daisy is. Phyllis presumes he's going to help her, but he says he thinks Daniel is right that the baby needs to get as far away from Daisy and Genoa City as possible.
Victor steps into Skye's hut with a gas can. He throws her belongings, including her distinctive perfume, into a suitcase and then pours gas around. He lights a match to Skye's things.
Genoa City Spoilers for Tomorrow on The Young and the Restless:
Daniel tells Abby he's about to climb out of the hellhole Daisy's dragged him into.
Daisy goes into labor and Jana wants to take her to the hospital, but Daisy refuses, saying they'll throw her in jail.
Adam says to Sharon, "You did it. You saved me again."