The second half of the finale episode of From season 3 picks up right after the search party disperses to look for Fatima. It turns out that Ellis did become suspicious of Elgin during his weird rambling toward the end of last week's episode. He immediately goes to his father and Kenny, suggesting that Elgin might know more than he's letting on about Fatima.
Suspecting that Elgin is now hearing voices or seeing something in town that led him to kidnap Fatima, Boyd recruits Sara for some assistance. As the only other person around who has heard the voices and done horrible things because they asked her to, she might be able to help them get through to Elgin and convince him that they're lying.
Meanwhile, Julie and Victor bring Tabitha back home to calm down and have some tea after her breakdown in the root cellar. She reveals to Jim what she saw, feeling like she was connected to Miranda. Jim returns to town to find Jade, apologizing for the way he acted before and asking for his help in assisting his wife. Jade wonders if maybe when people die in this town, their souls, or their energy, might linger in town until they find a new host.
At Colony House, things take a really dark turn when Boyd and Donna start questioning Elgin. He refuses to say where Fatima is because he genuinely believes that the kimono lady, or the voices talking to him, will send them home after Fatima gives birth. Nothing they say can convince him otherwise, so Boyd turns to torture. Not even Father Khatri's ghost can dissuade him. Boyd is desperate to find Fatima. He instructs Kenny, Sarah, and Donna to wait outside while he "chats" with Elgin to prevent anyone from coming into the house.
But Elgin is resilient, not even when Boyd bludgeons his hand with a hammer does he relent. And it gets worse when Acosta shows up and barges into the bedroom. I can't really blame her for her reaction here as she demands an explanation from everyone for allowing Boyd to take things this far. Boyd escorts everyone out of the room as they all argue about what to do and the ethics of this interrogation method.
Unnoticed, Sarah slips into the room to be alone with Elgin. Seeing as she's the only one who has experienced something similar, she's also the only one who knows how far Boyd will have to go to make Elgin talk. She doesn't want Boyd to face that kind of trauma, something she's already dealt with from killing people before.
We don't see what Sarah does to Elgin, but when everyone downstairs hears him scream they rush back to the room and find him bleeding, Sarah having driven a screwdriver through one of his eyes. But she did find out where Fatima is.
However, by the time Kenny, Ellis, and Boyd arrive at the root cellar, it's too late to stop what has already been set into motion. Fatima gives birth to some kind of strange bloody sack, and the kimono woman takes it down into the hatch, which suddenly springs open. During her time with the woman, Fatima has learned that the people in this town once sacrificed children in exchange for immortality, meaning that's who the monsters are. Boyd tells Ellis and Kenny to tend to Fatima and take her back to the house.
And he goes down into the hatch alone. It leads down into the tunnels, the place where the monsters live and Boyd watches in horror as the "sack" opens and reveals a newly reborn Smiley. It means that the monsters can't permanently die. Many fans correctly guessed that Fatima was going to give birth to a monster, it looks like because they "killed" Smiley before, he now has to be returned to life as part of the ritual they performed years ago.
While all of this is happening, Jade, Tabitha, and Jim work together to crack the riddle of the bottle tree messages. Jim realizes that the various numbers and sequences correlate to musical notes. The trio decides to play the song on one of the town's old violins, but they agree to do it somewhere outside of town, in case something bad happens. After all, we know nothing in this town is "good" and considering Boyd's run-in with an evil music box, who knows what will happen when they play the song.
As Jade plays the music, the Anghkooey children come out of the woods and approach them, and Tabitha and Jade start remembering.... Tabitha confirms to Jim that yes, she is indeed Miranda. And beyond that, Jade is a version of Christopher. The original versions of them were in this town at the very beginning, when the immortality ritual first occurred. Whoever they were at that time, they had a child together, and that child was one of the seven sacrificed as part of the ritual. It's why they keep coming back, or being reincarnated, again and again. Because they keep failing to save the children.
And if you thought things couldn't get any weirder.... well. Jim walks off to take a breather and gather his thoughts when Julie comes running out of the forest in search of him. Except this Julie is clearly different from the Julie we know. For starters, she has much shorter hair.
Earlier in the episode, Julie asks Ethan if it would be possible for her to go back in time to change their story. Ethan tells her she can go back, but not change anything. It seems like she tried anyway. She rushes out of the forest toward her dad just as a mysterious (and probably evil) man wearing a yellow suit. He tells Jim that his wife shouldn't have gone down that hole and then promptly rips out his throat as a traumatized Julie is forced to watch.
We can assume that Julie knew what was going to happen and maybe went back in time to try and stop this very event from occurring. But wow. Tons of twists in the span of one episode!