Warning: This post contains spoilers from The Better Sister episode 7 and references to domestic abuse from this point forward.
After Chloe bravely shared her truth on the stand in episode 6, The Better Sister episode 7 begins with a flashback featuring a graphic depiction of Adam's physical abuse. Ethan watches from the balcony of the apartment as his father shoves his mother against the wall and firmly presses on her chest. He watches Chloe remove herself from his grasp and exclaim that if he touches her again, she'll kill him. That's why Ethan thought she killed him.
In real time, she assures Ethan that she didn't kill his dad. They still have to answer that question. Even with it hanging in the air, Chloe and Nicky are getting along and giving Ethan a loving home. They reminisce about their childhood, Shadow/Wallace Lake, and other fond memories. Before heading into the city, Chloe stops by Jake's and spots him talking to Michelle. She apologizes to him, but she doesn't seem too torn up about it.
Detective Bowen drops by the local bar in the Hamptons where he asks the bartender about Artie and learns some new information about the night of Adam's murder. The bartender reveals Artie picked a fight with Adam and a flashback shows us that Artie knew he was hurting Chloe and threatened him. He really cares for Chloe and Ethan, which we see firsthand when the pair return to their apartment in the city.

Chloe and Nicky look for more clues
While Chloe stresses over realizing the Gentry Group file was empty, Ethan puts on his knight gear and has a moment on the balcony with Adam's ashes. He says his emotional final farewell to his dad and spreads some ashes into the city. Back in the Hamptons, Nan trails Nicky to a meeting and secretly steals her cigarette butt off the ground for a DNA sample. Nicky decides to follow Nan right back.
She sees Nan visiting an older man at an assisted living facility. A worker reveals Nan "put" him in the home. Meanwhile, Chloe speaks with Catherine, who suggests that she and Nicky co-author a book about their story. Chloe's next stop is at a bar with Bill, who wants to put everything behind them and keep being rich and powerful. She plants some seeds about calling the FBI agent, letting him know she isn't playing his game.
Speaking of the FBI agent, he pays Jake visit. They had a deal, which involved Jake providing information to help strengthen the FBI's case against the Gentry Group in exchange for his immunity. It's tense and Jake wants to be out, but Olivero physically threatens him. Yeah, this won't end well if Jake doesn't follow through! He's getting it from all sides. Olivero then meets with Detective Bowen.

The truth and the killer's identity finally comes out
Nan speaks with Artie about what happened the night of Adam's murder and their argument. He admits to having an affair, which is why he doesn't want to be honest about that night. He maintains his innocence and has to give the detective his secret lover's number to verify. Artie also reveals to Nan that Nicky still takes care of Adam's mother, her former mother-in-law, back in Ohio. Nan seems to have a new lead.
Chloe receives another adult DVD with her face on it in the mail as well as police records Ethan ordered from his accident in the pool. As Chloe and Nicky compare notes about their respective missions, Ethan shows Chloe the records. She reads that Ethan showed no signs of water intake and Adam said Nicky was mumbling about Wallace Lake. That's a dead giveaway to her that Adam was lying. Chloe had told him about that.
They quickly realize that Adam lied about Nicky's condition to gain control. A flashback to that day reveals that Adam came home to find Nicky having a drink and Ethan unattended in the pool in his float. He sends her back outside and makes her a new drink, which he adds crushed up pills to. He drugged her and called the police when she was face down in the pool and Ethan was fine. Adam needed her out of the picture to "protect" Ethan.
After hallucinating a conversation with Adam, the guilt washes over Chloe as the reality of her past decision sets in. She didn't know what she was involved in and what she did to Nicky. But Nicky shows her grace, saying that she wouldn't have survived Adam. She doesn't hold it against Chloe because she's known the truth for a couple years. But when she learned what Adam was doing to Chloe, she knew she had to intervene. That's why she came to town and killed him!
Watch The Better Sister only on Prime Video.