At Society, Diane cringes as Phyllis walks in. Jack narrates, “She’s going to the bar,” but then irks his wife by waving her over. Phyllis joins them for some chat about Harrison and Jack steers the conversation to her and Cane. Phyllis claims their partnership is going swimmingly and will be the best thing to hit the town in decades. Jack drops the bomb that they’d heard Cane had a change of heart. Diane needles the redhead for pretending things are going so well when Cane’s pulling back.

More: Michelle Stafford’s tantalizing tease

Phyllis asks if they got the bogus info from Billy, who was dumped from the business. Diane asks Jack, “Is her nose growing?” Phyllis says her barbs are as “old and tired” as she is, but concedes there is a delay due to Cane taking time off to fix things with his kids.

Once Phyllis has gone back to the bar, Jack tells Diane he had been hoping to get more information, but she let Phyllis push her buttons. Deciding that something feels off; something isn’t right about this, Jack suspects Cane is spreading the word that he’s backing off while biding his time before striking. As they prepare to leave, Amanda walks in. She apologizes for the tragedy in France. Jack and Diane warn her if there are anymore surprises, they’ll make sure she and Cane regret the day they came back.

Amanda joins Phyllis and asks if Jack threatened her too. Phyllis says he wants to know what Cane is up to… she does too, frankly. They go over Cane’s intention to back off and Amanda slips that she’s put a lot of hard work into this, so it’s a shame. Phyllis wants to know what she did, and hedges that she already knows about the AI. Amanda insists there’s nothing to tell, but Red can see she’s lying. How was Ashby planning to get privately-owned companies? Amanda learns that Phyllis offered to take over until Cane’s dealt with his kids. Red wants Amanda to talk to him. “This is good for you too!” she stresses.

Is Cane Cornered?

Victor welcomes Cane into the ranch and asks what brings him by. Cane wanted to let him know he’s turning down his request that they partner together to take Jabot from the Abbotts. He has to focus on his family right now. Victor claims he understands, however, this wasn’t a request… it was an order. Cane can’t follow through. “I’m sorry.”

More: What Y&R is hiding from fans

Victor threatens to use Newman Media to expose his father’s scheme with the French chateau. Cane, smirking, says he’ll take his chances. Victor wonders how his children will feel when the truth comes out. Turning the tables, Cane asks why he’s so sure he can trust him… also, why does he need him to take Jabot in the first place?

Victor accuses Cane of playing games. He knows they have developed an artificial intelligence software that allows him to infiltrate any company and destabilize it. Cane chuckles that if such a thing existed, which it doesn’t, does Vic really need more power and influence? Chuckling back, Victor says of course he does. Cane continues his denials about the software, but the Mustache is sure he’s planning to pair it with Phyllis’ hacking abilities. Cane declares the whole suggestion “ludicrous”. Victor leans forward intimidatingly and asks, “Who do you think you’re fooling?!” He knows Cane can do it, and he will benefit. “Not you.”

Victor mocks, “You didn’t think I’d figure this out, did you?” Cane tells him he’s got it all wrong. What he’s talking about is dangerous and should be used for good. Victor intones that they will partner and use the software to destroy Jabot and take it away from the Abbotts once and for all!

Will Claire Turn Kyle Down?

At the Abbott mansion, Kyle’s one knee in front of a puzzled Claire declaring, “This just feels so right.” She remarks that this was so sudden… she wasn’t expecting it (probably because he wouldn’t have done it if not for the Audra drama). Realization dawns that he ordered the ring after their argument today… he’s just trying to fix what he did.

Kyle denies her accusation, but she feels everything he does these days is a reaction to something else; he didn’t tell her the truth about Audra until his parents pushed him. Audra’s playing a role in this proposal. Kyle insists it’s from the heart. Claire argues they haven’t even lived together yet. What’s next? Will he suggest they have a baby?!

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Following Claire through the house, Kyle protests he just wanted to make things official. After some more apologies, Claire admits she still doesn’t understand what he was doing with Audra. Kyle had to see how far she was willing to go to trap him. “The plan almost worked, but…” he stops, realizing his mistake. Claire erupts. Just how close did he get to sleeping with Audra?!

Kyle, unsurprisingly, wants to forget all about Victor and Audra. Claire questions him not seeing the red flag this presents. She doesn’t trust easily and he’s damaged that. Kyle solemnly says he sees this. He beats himself up verbally and then tries the proposal again. Claire believes he wants it, but she needs time to think about it.

Kyle wants to pretend nothing happened and sit and talk over dinner. Claire tells him about her promotion, and he jovially congratulates her. She muses, “It’s a day for surprises.” She wants to call it a night. Swiping away tears, Kyle says he understands. Claire reiterates that she needs time as she turns away from an attempted kiss and leaves.

Jack and Diane return to the Abbott mansion to a dejected Kyle. They’re sorry Claire turned him down. Kyle chortles that they told him not to push. Jack points out they didn’t want to be right. Kyle admits Claire saw his proposal as an act of desperation, just as they warned she would. They cluck that she just needs some time and space.

More: Massive plot hole leaves Cane open to deadly attack

What Will Claire Do Next?

Esther greets Claire at Crimson Lights and suggests some decaf. Claire feels like living dangerously with the espresso.

Turning, Claire sees Holden, who’s also sipping a double espresso. He asks if she’s alright. She admits, “It’s been a day.” Holden’s had a few of those lately too, and wants her to join him to talk.

Claire surprises Holden by announcing she’s over the idea of coffee and wants to get drunk. She’s never tried it. “Care to join me?” she invites with a smile.

More: Will Claire and Holden have sex?!

Next on The Young and the Restless: Jack and Diane share words of wisdom with Kyle. See more previews below!

Get a look at Wednesday’s previews in the photo gallery below.