After witnessing Mark Hoffman (Costas Mandylor) survive the reverse beartrap, Jill Tuck (Betsy Russell) goes to Matt Gibson (Chad Donella), an internal affairs detective at Hoffman's precinct. She offers to incriminate Hoffman in exchange for police protection and immunity. Hoffman, meanwhile, continues his work, killing four racist skinheads in a trap at an abandoned junkyard's garage and abducting Bobby Dagen (Sean Patrick Flanery), a self-help guru who achieved fame and fortune by falsely claiming to have survived a Jigsaw trap. As the police investigate the junkyard and search for Dagen, Hoffman sends videos to Gibson, offering cryptic clues to his location and promising to stop the games if Jill is delivered to him.
Bobby awakens in an abandoned insane asylum and is informed that his wife Joyce (Gina Holden) has also been abducted and will die if he does not reach her in time. Dagen navigates his way through the asylum, finding his publicist Nina (Naomi Snieckus), his lawyer Suzanne (Rebecca Marshall) and his close friend Cale (Dean Armstrong) all in traps. Despite his efforts to save them, all three are killed. The SWAT team manage to discover and raid the asylum, but they cannot reach either of the Dagens and all eight of them are killed by toxic gas.