Cerise Hood has successfully kept her family secret hidden under lock and key. But when Kitty Cheshire catches her up to some unusual activity in the woods, she tries to unravel her secret like a ball of yarn in front of the school.
Deep within the Enchanted Forest, Cerise and Carmine are having a race. Though they have a lot of fun, Cerise has to return to school. Carmine licks her face in greeting, which makes her hood fall off and her wolf ears become exposed. Ushering Carmine back to their pack, Cerise puts her hood back on and runs off, unaware that Kitty Cheshire saw everything.
Back at school, Kitty confronts Cerise and insinuates she will spill Cerise's secret to everyone. Cerise is next approached by Raven, who notices something is wrong with her and offers to help. Feeling desperate and needing someone reliable to know, Cerise reveals that she is not only the daughter of Red Riding Hood, but also the Big Bad Wolf—she is the result of a marriage, that goes against all fairytale norms. Raven vows not to tell a soul, but Cerise counters that Raven isn't the one she expects to rat her out anyway.
During Grimmnastics, the students are made to run laps. One particular race pits Cerise against Daring Charming and the middle pig. All seems fine until Kitty appears in the audience and her lackeys show up with a cage. On Kitty's sign, they release a deer within the track and the sight of it triggers Cerise's wolf instincts. She completes the lap much faster than her opponents, shocking everyone present. Kitty's lackeys lock away the deer again, and Cerise returns to normal. Realizing what she has done, Cerise tries to make herself small, but Kitty draws attention back to her with taunts that Cerise has something to tell the school. At this point, Raven cuts in and announces that Cerise's feat, was made possible with her black magic. Kitty protests, but Raven shuts her up by casting such a spell on her. As Kitty involuntarily does laps, Cerise thanks Raven.
- "The Cat Who Cried Wolf" is a pun on the story The Boy Who Cried Wolf.
- Carmine and Carrolloo make their webisode debuts.
- We see a photo of Cerise's parents, which is the first time we see a student's parents in the cartoon.
- When the scene switches to the track, Briar is not among the audience. She suddenly sits between Apple and Ashlynn a shot later.
- During the scene in which the deer is released, the front cat is only half drawn in.
- Both times Cerise's eyes are zoomed in on, they are more blue than gray.