During the party while Bob is changing into the costume Teddy picks out for him, he accidentally squashes her under the costume. After some revival attempts from Teddy, Gretchen, and Mike, she dies and Teddy sets out to discover who killed her after the police wouldn't accept the case as an emergency. Teddy's unusual methods of solving the case involve checking everyone's shoes and allowing Gretchen, claiming to be a medium, to contact her spirit.
While holding a funeral for Francis around the back of the apartment, Teddy asks Bob to provide a eulogy where he eventually owns up that he squashed her under his costume. Teddy doesn't show any signs of anguish towards Bob as he agrees that he probably shouldn't have spray-painted her. They both agree that they both killed her.