Echo and Mu's first stop in their investigation into the mysterious Jimi Stonefree is Freak Scene Academy. There, the academy's director offers them the school's file on Jimi in exchange for their help.
Mu and Echo Rec visit Freak Scene Academy, which has produced many great Players. They meet with the director Kim, who explains that even though she is director, no one listens her. She reveals that Bilin had contacted her that a Player Mu may come and request information about Jimi Stonefree, but she can't give outsiders information about their students that easily. Kim shows them a spray can Teen Spirit and asks them to find the source of it and she will give them Jimi's file.
Kim introduces Mu and Echo as new students and Mu quickly gets popular among the boys. As the boys surround her, Hole, the student council president takes her away and guesses that Kim asked them to find Teen Spirit, a drug used by Players to relieve stress and tells Mu that he will help. Meanwhile, Echo gets followed by Nir, who explains she wants to be his friend. She takes him to the roof, where she likes to hang out and reveals that she lost her parents long ago, but after seeing a picture of Jimi, she got inspired to become a Player like him.
Mu is unable to find any trace of who gives the Teen Spirit, but finds out that its easy to make and its a popular substances given to soldiers. Echo shows the amp he made to Nir and she ends up plugging her jack and activating it. She uses Teen Spirit and starts attacking the school and eventually slams her to the ground and manages to escape.
Knowing how the Teen Spirit is made, Mu figures out its made at a closed pool, where she finds Nir and Hole. Hole reveals he is the one making it and had managed to convince Nir to join him and destroy the world with him, just like Jimi tried to. Hole gives Nir the student council amp and she activates it. Having no choice, Mu does the same and engage Nir in a fight. Echo faces Hole, who states that Nir isn't his friend, but a trump card and after they graduate he plans to sell the drug and her to the military. He attacks Echo and makes both of them fall from the jumping platform of the pool, but Nir catches Echo, while leaving Hole to fall into the drug-filled pool. Nir explains that she no longer can stay in the school and that eventually all Players go insane.
Having solved the case, Kim gives them Jimi's file, but its mostly redacted to keep his info top secret. They see a picture of Jimi and Denka and Kim comments that after graduating, Jimi went to see Denka. Leaving the school, Mu tells Echo that he may not have realized Nir was a girl and that shocks Echo.
- The episode title is a reference to the American band Nirvana's song "Smells Like Teen Spirit" and visually references their album "Nevermind".
- Nir's name is from the band and her appearance and personality are inspired by frontman Kurt Cobain . In the episode, she recites lyrics for "Smells Like Teen Spirit".
- Hole's name is from American band Hole, which was founded by Courtney Love, Kurt Cobain's widow. Nir and Hole's relationship is possibly inspired by Cobain and Love's relationship.
- Freak Scene Academy is named after the Dinosaur Jr. song "Freak Scene".
- Freak Scene Academy's headmaster, Kim, is inspired by musician Kim Gordon, who was part of Sonic Youth and produced Hole's first album.
- In the school their are numerous references to bands such and Kiss, Pink Floyd and Oasis.
- There are students at the school based on bands Mudhoney, The Pixies, and Smashing Pumpkins.