⚠️**FLASHING LIGHTS AND RAPID IMAGES, LOUD MUSIC AND SOUNDS**⚠️
This episode made me feel like I was on some kind of acid trip.
Lain is connected to the wired in a much deeper way, taking in all the information she can...Eiri tells her that she is "software," a functioning autonomous program given a physical body to merge the wired with reality.
Even though it was extremely creepy, I am glad we were shown what happened when Lain found out about evil Lain and decided to delete the memory of what happened with Arisu and her teacher.
Arisu, probably relieved, still was scared of what her friend, real or wired, had done.
I can tell that there is an internal struggle in Lain trying to figure out if she is real or wired.